Both UK and overseas companies increasingly insist that their trading partners support their contractual obligations by way of a bank bond or guarantee, i.e. a bank undertaking to pay the beneficiary in the event that the bank’s customer fails to fulfil the terms of its contract.
To provide you with support and meet this requirement, we offer a full range of on demand domestic and foreign bonds and guarantees, including bid/tender, performance, warranty, advance payment guarantees and standby letters of credit.
A Handelsbanken guarantee will provide your trading partner with evidence of your financial standing and proof of your commitment to fulfil your contractual obligations.
In addition to our suite of standard guarantee wordings we can issue customised guarantee formats.
A standby letter of credit is an alternative to a bond or guarantee that sits behind an underlying contract, providing an undertaking by a bank to guarantee payment in the event of non-payment or performance by a buyer or seller, as the case may be.
- A simple, cost-effective instrument providing surety of payment (subject to terms and conditions being met)
- Can be used to replace or enhance credit risk insurance