Your company is active in many countries and the risks related to your everyday import or export business need to be secured. A wide range of risks can be hedged with the issuance of the type of bank guarantee common to cross-border trade. 

It is recommended that foreign transactions are secured with a guarantee, but there are some points which should be noted in this respect.  

Unlike a surety bond, a guarantee is made independent of the underlying transaction. The guarantee document specifies explicitly that the document in question is a guarantee and contains clauses such as "payment on demand” and/or "waiving any defences barring performance or rights from the underlying transaction”. If these phrases are not used it can be inferred that the guarantee in question is of a accessory nature.  

To secure your foreign trade only accept a bank guarantee which applies "on demand” by the beneficiary, and not a surety bond.

Types of guarantees

• Payment guarantee
• Delivery / performance guarantee
• Advance payment guarantee
• Tender guarantee
• Performance / contract guarantee
• Bill of lading guarantee
• Loan guarantee  

You will find the relevant application forms under Forms & Checklists.