Types of Guarantees
Scotiabank offers a range of different cross-border guarantees to help reduce risk at every step along the way towards the fulfilment of an agreement between an importer and an exporter.
Bid/Tender Guarantee: Issued in support of an exporter's bid to supply goods or services and, if successful, ensures compensation in the event that the contract is not signed.
Performance Guarantee: Issued as an undertaking to pay a certain sum to the buyer if the exporter fails to carry out the terms of the contract.
Advance Payment Guarantee: Gives protection to the buyer who has made an advance or progress payment to the exporter before the contract has been completed.
Warranty Guarantee: Provides a financial guarantee to cover the satisfactory quality or performance of goods or services supplied during a maintenance or warranty period.
Retention Guarantee: Ensures the refund of released retention monies to the buyer, in the event of non-performance of the exporter's obligations after the contract completion.