Bank Guarantee is an irrevocable commitment by a bank to pay a specified sum of money in the event that the party requesting the guarantee fails to perform the promise or discharge the liability to a third person in case of the requestors default.

A bank guarantee allows you to offer customers, suppliers and other third parties a guarantee of payment to secure a contract or leasing arrangement without tying up your working capital or affecting your other business activities.

A bank guarantee may suit your business if you need to promise payment to a third party, (e. g: to secure a business contract or leasing arrangement) or if you are in an industry such as property development, building, contracting or retailing.

Types of Guarantees:

  • Tender bond
  • Performance bond
  • Advance Payment guarantee
  • Retention Money guarantee
  • Customs guarantee
  • Avalisation of bill of exchange
  • Expatriate guarantee
  • Shipping guarantee issued in the absence of original Bills of lading as regards to imports
  • GFA (Garantie Financiere d’Achevement)