Reassure your international supplier and reduce your trade risk
Use it to guarantee payment in case of default or non performance
Specialist support from our Guarantees Team
A guarantee, or 'bond' as it's sometimes known, provides your supplier (the beneficiary) with acceptable security if you (the applicant) fail to fulfil your obligations in the underlying contract.
We can arrange many different types of guarantees to cover different risk scenarios. Below we have listed some of those we arrange most frequently. To find out which is most suitable for your business, call our specialist Guarantees Team.
This is the most common type of guarantee.
It's usually taken out for the entire length of a contract, plus a grace period to allow your customer to make a demand if you don't satisfy the obligations covered by the guarantee.
This is used where you require a sum of money from your customer at an early stage of the contract.
It gives your customer a financial solution if you don't fulfill any of the tender conditions.
This is used where you require a sum of money at an early stage of the contract.
Your customer can recover all or part of the amount paid in advance if you don't fulfil your underlying contractual obligations.
This is a guarantee for HM Revenue & Customs (HMRC). It enables you to import goods without immediately having to pay customs duty or tax.
You can request HMRC approval for a guarantee waiver when you apply for a Duty Deferment Account. If you do not get authorisation, you can still apply providing a guarantee.
This enables you to secure banking facilities for a subsidiary, associate company or personal account in other countries.
Access a wide selection of wordings covering the most common types of guarantees
If you require support when using our guarantees or Standby Letter of credit smartforms to transact (either issuing new, or amending existing instruments), then please contact our dedicated team on 03450563111 or via email at gteesadvisoryuk@hsbc.com who will be happy to guide you through the process.
Further information relating to VAT Bond/Duty Deferment Bond
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