Types of guarantees

Types of service guarantees:

  • A bid bond is intended for bidders who wish to participate in a tender and have to also enclose a guarantee to tender documents upon registration;
  • Performance security covers the buyer the risk and compensation of damage if the seller does not deliver the goods or does not deliver them within the periods under the contract, and it also insures the hirer of investment projects;
  • Warranty guarantee insures the buyer when they notify defects on the delivered goods to the seller in good time and correctly, but the latter does not correct them despite the request.

Types of payment guarantees:

  • Guarantee for the payment of goods and services secures the seller the payment of the purchase price or the payment of the services rendered;
  • Advance payment bond means insurance for the repayment of a pre-paid amount to the buyer, which the seller has to submit at their request. It is commonly used in relation to contracts for the delivery of goods, the sale of goods on credit and investment projects;
  • Guarantee for the repayment of loans insures the lender in the case of non-payment of obligations in a loan transaction.

Other types of guarantees:

  • Guarantees for securing the fulfillment or payment of customs requirements;
  • Guarantees for securing the fulfillment or payment of excise duty requirements;
  • Guarantees for securing the fulfillment or payment of tax requirements;
  • Guarantees for securing liabilities related to measures of agricultural and market price policy;
  • Guarantees to buyers of dwellings for the repayment of purchase price and the removal of hidden defects;
  • Guarantees in award procedures;
  • Guarantees for the payment of import and export duties and charges in respect of the transport of goods under the guarantee of the TIR amount.

In addition to direct guarantees, SKB also offers the possibility of a guarantee line and the issue of indirect guarantees (counter-guarantees) or the confirmation of its own guarantees by first-tier foreign banks.