Types of bank guarantee
A bank guarantee refers to a type of credit whereby the bank undertakes to act on your behalf and pay your counterparty a certain amount of money If a contract is not fulfilled. A bank guarantee provides your counterparty with the necessary financial security.
Whatever the type of bank guarantee you need, KBC Commercial Banking has it.
You’ll find the bank guarantee the suits your particular purposes in the list below:
Government contract
Covers your performance obligations towards a government body or state-owned company in the context of a public tender.
Performance of works
Covers the proper performance of the obligations set out in the underlying commercial contract, such as the timely completion of the works and the performance of the contract pursuant to its terms and conditions. If your counterparty is a government agency or state-owned company, choose the guarantee for a government contract.
Lease
Covers your obligations as a tenant to the landlord, as set out in the underlying lease.
Advance repayment
Covers the pro rata repayment of the advance you received from the beneficiary if you fail to honour all or part of the contract you entered into.
Delivery of goods or services
Covers the payment of compensation to the beneficiary if you fail to deliver or only partially deliver goods or services or fail to perform other obligations in the underlying contract.
Waste transport – OVAM
Covers your obligations, as principal debtor and notifier, to OVAM for transboundary shipments of waste during a specific period.
Waste transport – Wallonia
Covers your obligations, as principal debtor and notifier, to ‘Service Public de Wallonie’ (SPW) for transboundary shipments of waste during a specific period.
Waste transport – Netherlands
Covers your obligations, as principal debtor and notifier, to the Netherlands for transboundary shipments of waste during a specific period.
Payment of goods or services
Covers your payment obligations after performing the commercial contract, as set out in the underlying agreement.
Customs and Excise
Covers payment obligations to Customs and Excise:
- Comprehensive guarantee for community transit
- A personal guarantee
- Suspension rule
- A ‘deed of guarantee plus’
- Fiscal agent
- Any other customs-related guarantee
Tender
Covers participation in tenders abroad and, exceptionally, in Belgium too if the tender is not covered by the Public Procurement Act.
National Lottery
Covers the transfer of amounts collected to the National Lottery.
Non-retained amounts
Covers the buyer's failure to retain a certain percentage of payments as security for the proper performance of the contract.
Warranty period
Covers the proper performance of the warranty obligations, as set out in the underlying agreement.
Transport – goods
Required for the purpose of obtaining a transport licence for national and/or Community road haulage.
Transport – persons
Required for the purpose of obtaining a transport licence for national and/or Community road passenger transport.
Transport – transport commissioner
Covers claims arising from the performance of works covered by the transport commissioner's licence.
Lending by other financial institution
Covers very specifically the repayment of loans taken out at another financial institution.
Breyne Act via Deposit & Consignment Office – 5%
Covers your obligations, as an adequately licensed contractor, towards the buyer to complete a dwelling pending or under construction, as set out in the Breyne Act (Act of 9 July 1971).
Our guarantees tailored to your needs
KBC Commercial Banking provides bank guarantees that are tailored to your needs. To find out more, feel free to contact your relationship manager.