Secure trading guaranteed
Securing payment is often the number one concern for companies that handle a lot of cross-border transactions. Wherever you import from, we can support you by providing your supplier with the necessary guarantee. That way, distance needn’t impair your sales position or business. We can also check the terms of the guarantee you receive and of those to be issued.
Bank guarantees are traditionally used in foreign trade to facilitate transactions between distant parties. BNP Paribas Fortis undertakes to pay a particular amount should you fail to honour your commitments.
Bank guarantees can also be used to ensure the successful outcome of a tender. Bank guarantees do not involve disbursements on your part, and they offer you terms and conditions that you could not obtain acting alone. They are less expensive than credits for which banks advance money. The guarantees come in many different forms, according to the type of commitment required.
Bid guarantee
A bid guarantee (or bid bond) will be requested if you put in a tender for a contract. BNP Paribas Fortis undertakes to pay to the beneficiary on request, all or part of the amount of the guarantee if you withdraw your offer or if, having secured the contract, you refuse or are unable to sign.
Performance guarantee
The sole alternative in cases of poor or incomplete execution of a contract is to have the work completed or put right by another company, resulting in an increase in price. That’s the risk covered by the performance guarantee, which is usually issued for the equivalent of 5–10% of the value of the contract. The guarantee is partially released on provisional acceptance of the work and completely released on final acceptance.
Advance payment guarantee
In issuing an advance payment guarantee, BNP Paribas Fortis undertakes to refund any advance payments made by your buyer if the promised supplies are not delivered or if the work described in the contract is not done. This guarantee can sometimes be reduced as deliveries occur or as work progresses.