Why take out a bank guarantee?
A useful tool
After closing a business deal, there is every chance that the counterparty will ask for some type of security, especially if you’re dealing with each other for the first time or if large sums of money are involved. In such cases, a bank guarantee (or bank warranty) is a useful way of providing security to the counterparty.
What are the benefits of a bank guarantee?
A bank guarantee offers security to the beneficiary should the:
- Buyer fail to pay after delivery of the goods or services
- Supplier fail to meet its contractual obligations
A bank guarantee protects your cash resources and ensures they’re not put under pressure. Having one means that you won't have to tie up working capital if the counterparty asks for a deposit.
A bank guarantee can strengthen the growth of your business at home and abroad. It makes it easier to secure foreign contracts because it provides confidence and certainty to the counterparty.
Why take out a bank guarantee with KBC Commercial Banking?
- You can quickly and easily apply for the guarantee online using the KBC Business Dashboard
- You can apply for, modify and start releasing the guarantee in just one app
- You are guaranteed a transparent and competitive price thanks to the all-in fee
- Your beneficiary receives the issued bank guarantee within one business day
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What types of bank guarantee does KBC Commercial Banking offer?
KBC Commercial Banking provides purpose-specific bank guarantees. We also provide bank guarantees that are tailored to your individual needs.
Our most common bank guarantees cover:
- government contracts
- the performance of works
- repayment of advances
- the delivery of goods or services