CKB Guarantees for Micro and Small Enterprises
CKB provides bank guarantees for clients' obligations to third parties. Commonly used types of guarantees are:
- Payment guarantee: represents a bank guarantee by which the Bank guarantees for regular settlement of obligations to suppliers within the guarantee period. It is a guarantee by which the Bank guarantees for an approved limit, i.e. the amount up to which the client may withdraw and pay for goods under a particular contractual agreement within the specified guarantee validity period.
- Customs guarantee: With the customs guarantee, the Bank guarantees to the Montenegrin Customs Administration for regular settlement of obligations related to excise duties, taxes, customs debt and other levies owed by the client, depending on the customs process. These guarantees can also be used as security for the payment of some services – goods warehousing, goods transit, active and passive improvement of goods.
- Tender (bid) guarantee: is a bank guarantee by which the guarantor (CKB) undertakes to pay to a beneficiary (contracting authority) certain amount of money if a tender participant (guarantee principal) revokes its bid during the bidding process or refuses to conclude contract in accordance with conditions of the accepted tender (bid).
- Retention guarantee: represents a bank guarantee by which the guarantor (CKB) undertakes to pay a certain amount of money at the request of the beneficiary if the principal fails to fulfil the obligations from the underlying contract. The Bank pays the guarantee amount to the employer, if the client (to whom the Bank has issued the guarantee) does not deliver a certain quality, i.e. does not eliminate the observed defects within the guarantee period.
- Performance guarantee: can be used for almost all types of sales agreements or commercial service agreements. However, it is most widely used in agreements on delivery of equipment on credit or in building contracts. By performance guarantee, the guarantor (CKB) undertakes to pay, upon beneficiary’s demand, a certain amount of money if the principal fails to meet obligations stipulated under the underlying contract.
- Advance payment guarantee: is a bank guarantee by which the guarantor (CKB) undertakes to pay to the guarantee beneficiary (buyer) a certain amount of money (advance payment made), if the guarantee principal (seller, for whom the Bank guarantees) fails to meet contractual obligations. It is generally used in connection to large export/import deals, where suppliers of equipment or other goods require buyers to pay a certain amount as advance payment. Also, in case the seller fails to deliver the goods for which the advance payment was made, this guarantee is the security for the buyer to recover the payment made.
- Loan amount: up to €100,000
- Maximum maturity
- Payment guarantee: 24 months
- Tender guarantee: 12 months
- Performance guarantee: 24 months
- Retention guarantee: 60 months
- Advance payment guarantee: 24 months
- Letter of credit guarantee: 12 months
- Customs guarantee: up to 36+2 months
Loan security depending on the guarantee type and period
- Personal promissory note
- Corporate promissory note
- Authorization for collection against corporate account
- SME loan application
- Completed and signed application
- Copy of the registration decision
- Copy of the decision on registering for VAT
- Copy of the certificate on the activity classification (if any)
- Copy of specimen signature card for the Bank account
- Copy of OP Form (certified signatures of persons authorized to represent the company)
- Statute and founding document
- Financial statements (balance sheet and income statement ) for the previous 3 years (certified by the Commercial Court or the Tax Administration)
- Balance sheet, income statement - auxiliary forms, for the previous 3 years
- Financial statements (balance sheet and income statement ) – year to date
- Trial balance for the previous 2 years and year to date
- Analytics of customers and suppliers for the previous year and year to date
- Consent for access to Credit Register (RKB) from the company and company owner (and all subsidiaries and guarantor)
- Balance sheet and income statement for the previous 2 years for the company owner and/or subsidiaries (if the company owner is a legal entity and/or if there are subsidiaries)
- Additional documents
Interest rate and loan processing fee are determined on the basis of economic and financial analysis of the company, credit history, turnover on the account with CKB, and collateral quality and value.