Home>Large Companies>Bank Guarantee Gain security and better business contract conditions thanks to bank guarantee. This is a guarantee that money will be paid to the entitled beneficiary based on his/her request and a statement that the ordering party did not fulfil its commitments. A bank guarantee is a written commitment from a bank stating that a certain sum will be paid to an entitled beneficiary based on his/her first request and a statement that the ordering party did not fulfil its commitments. Guarantees are usually issued with the payment condition "upon first request and without objections", which in practice means that the bank is obliged to pay immediately without examining further circumstances, naturally provided the conditions of the guarantee have been satisfied. Advantages of bank guarantees: a safer form of guarantee provided than crediting funds to the business partner's account a commitment with exact time limits option to enter into a business contract under more beneficial terms Guarantee types: bid bond advance payment bond performance bond retention bond payment guarantee customs guarantees standby letter of credit Contact CitiService