Foreign%20Guarantees

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Foreign Guarantees
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Irrevocable Obligation
Sum of Money
Non-performance
Contractual Obligation
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Target
Construction and Engineering Companies
Regularly Tender for Business
Cross-Border Guarantees
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Types of Guarantees

• Bid/Tender Bond
• Performance Guarantees
• Surety Bonds
• Advance Payment Guarantees
• Facility Guarantee
• Payment Guarantee
• Standby Letter of Credit
• Retention Money Guarantee

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Bid Bonds

• Ensure Non Withdrawal
• Condition of Permission to Tender
• 2 - 10 of Contract Value

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Performance Bonds

• Underwrite Contractors Performance
• Indicates Contractors Creditworthiness
• 5 - 10 of Contract Value

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Advance Payments

• Working Capital
• 10 - 20 of Contract Value
• Undertaking Given to Refund Amount Prepaid

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Benefits
Gives Credence to Customers Capability to
Fulfil Obligations
Reputable RSA Banks Accepted Worldwide
Favourable Terms
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Considerations

• Credit Limit Required
• Payable on Demand
• Bank
• Not Obliged to Examine Validity
• Legally Obliged to Pay