Payment guarantees

  • Represent security for your receivables
  • Ensure correct and timely completion of a contractual agreement
  • Enable spreading of business relations
  • Years-long experience
  • Largest client base
  • Wide offer of quality banking guarantees
  • Professional client relations

Product description

Nowadays, the largest portion of sale arrangements is carried out against deferred payment. To that end, receivables need to be backed by adequate security and companies may use payment guarantees for this purpose.

Payment guarantee represents a banking guarantee by which the Bank guarantees for regular settlement of obligations to suppliers after a certain period, upon fulfilment of certain conditions.

Payment guarantee may also be issued as a revolving payment guarantee or guarantee of the volume. It means that the Bank guarantees for an approved limit, i.e. the amount up to which a client may withdraw and pay for goods under a particular contractual agreement within the guarantee validity period. This type of guarantee is especially convenient for companies that have frequent purchases from a particular supplier who seeks to secure its receivables.

Product price

For this guarantee, the Bank will charge its clients a minimum fee for issuing a guarantee in the amount of EUR 50, or 2,00% - 3,00% annually of the approved guarantee amount.

In special cases, the Bank management may apply a negotiated fee for issuing a guarantee.

Required documentation

To apply for this guarantee, the client has to submit the following documentation:

  1. application for obtaining a performance guarantee in the typed form, with all important company data
  2. financial statements for the last commercial year
  3. contract between the applicant and third party requiring a particular type of guarantee or a pro-forma invoice with stated payment conditions, agreement or letter of intent

In addition to the aforesaid, the required documentation, regardless of the type of guarantee asked by the client, includes:

  1. copy of registration certificate
  2. copy of certificate on company classification according to its business activity
  3. copy of signature specimen card
  4. copy of OP application form (certified signatures of persons authorized to represent the company)
  5. set of forms for annual financial statements (Balance Sheet, Profit and Loss Statement, Cash Flow Statement, Statement on Changes in Equity, Balance Sheet ancillary form, Profit and Loss Statement ancillary form, Tax Return on Profit Tax, Calculation of Depreciation for tax purposes) for the last 3 years, certified by the Commercial Court
  6. trail balance for the last 3 years, financial statement on operations (Balance Sheet and Profit and Loss Statement) for the current year overview
  7. trial balance for the period of the current year

How to apply for a guarantee?

The company should submit the application supported by required documentation to the Bank. The application for obtaining the guarantee must be certified by corporate seal and authorized signature.

The application must include the data that will facilitate evaluation of the overall activity and the economic and financial analysis. On the basis of the submitted documentation and performed analysis, the Credit Committee will decide on the application and, if approved, contract will be signed with the client.