Bank guarantee

Does your business partner want collateral or perhaps you want to protect yourself against claims? With a bank guarantee, you can cover your performance and payment obligations.

The bank guarantee at a glance

• The bank undertakes to pay a specified amount to the beneficiary if the contracting partner does not deliver an agreed service or payment.

• East Pacific Bank strength as a guarantee bank makes you a welcome business partner.

• For example, it's ideal for bids, signing contracts, advance payments and upon delivery.

Which bank guarantee is right for you?

    Direct guarantee

• This guarantee is used for both domestic and cross-border transactions. The guarantee is based on a contract between two business partners.

   Indirect guarantee

• This type of guarantee is often used in cross-border transactions – especially when foreign government offices or state-owned enterprises are involved. Some countries also don’t accept foreign banks as guarantors due to statutory provisions.

   Standby letter of credit

• Also known as “Standby LC,” this guarantee is mainly used in business with US contractual partners as well as in the Far East.

    Surety

• Used in accordance with the Swiss Code of Obligations and is mostly used in Swiss transactions.

    Confirmed payment order

• The so-called promise of payment is an irrevocable payment obligation, similar to a guarantee.