BANK GUARANTEES
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)