Bank Guarantee is a security instrument in domestic and international business transactions, through which the bank guarantees to the beneficiary that it will pay the specified amount if the primary debtor fails to fulfill their obligations.
Benefits for the Beneficiary:
- In all its forms, a bank guarantee ensures security by providing compensation from the bank in case of non-payment or non-performance by the contractual partner.
Benefits for the Applicant:
- By leveraging their bank’s name, the applicant secures a stronger position and better negotiation terms while also being protected from the beneficiary’s negligence.
Types of Guarantees:
- Customs guarantee
- Advance Payment Refund Guarantee
- Bid or Tender Guarantee
- Performance Guarantee
- Payment Security Guarantee
- Loan Repayment Guarantee
Letter of Intent
A bank’s letter of intent may be issued for:
- Advance payment refund
- Performance guarantee
- Warranty period obligations
- Any other business need that meets the bank’s criteria
Letter of Intent Options:
- Non-binding for the bank
Currency: RSD, EUR, CHF, USD, or foreign currency with a currency clause
Target Group: Legal entities
Approval Conditions: Based on the client’s creditworthiness
Amount: Depends on the client’s creditworthiness and needs
Fee Calculation: Fees are charged as a one-time payment in advance
