Hedging your contracting partners' risks
At a glance
- We will issue exactly the right type of guarantee – made to measure to fit your needs – to protect any of your underlying transactions1.
- Should various or different guarantees spark your interest, we'd be happy to advise you on the conclusion of a guarantee line agreement which will offer you a high degree of flexibility.
- All types of guarantees can be drawn only for sums of money, and not for the performance of services.
A safety net for your clients, a good solution for you
Guarantees preserve your own liquidity, whilst opening up new business opportunities.
Create and amend guarantee orders digitally in our corporate client portal.
Log into our Corporate Client portal to get an overview, and download all your national and international guarantees, along with your loans.
Made to measure
Are you looking for customised contract wording? We'd be happy to draft individual texts if standardised guarantees won't do.
We’re there for you if you wish to mandate a second bank with a guarantee (indirect guarantee).
We are ready to take care of your guarantee-related needs at seven locations in Germany, as well as in numerous international branches.
Domestic guarantees offer flexibility
Apply for guarantees and suretyships for your German business online
Hedge your national transactions and improve your liquidity –
Types of international guarantees: characteristics
Guarantees are abstract and irrevocable payment promises by a bank. How clients benefit: clients obtain swift financial compensation for damage caused by non-performance, or insufficient performance, of their contracting party's contractual or payment obligations, by waiving any and all defences and objections arising from the underlying transaction and the relationship between the bank and its principal.
Standby letters of credit
Standby letters of credit fulfil the same purpose as guarantees, and contain similar terms and conditions. Form and presentation are similar to those of documentary letters of credit. The Uniform Customs and Practice for Documentary Credits (UCP) apply accordingly. In contrast to "normal" letters of credit, however, standby letters of credit do not classify as payment instruments.
The main difference between bank suretyships on the one side and guarantees and standby letters of credit on the other: suretyships do not qualify as an abstract payment promise, independent from the underlying transaction, but rather as a unilaterally binding contract requiring the surety to stand in for the settlement of the third party's obligations vis-à-vis the creditor. Creditors enter into such suretyship contracts to protect themselves against their debtor's potential insolvency. Differentiation is made between direct and indirect guarantees.
Direct guarantees: the guarantor assumes direct responsibility vis-à-vis the beneficiary.
Indirect guarantees: the principal's bank instructs a second bank to issue a guarantee in favour of the beneficiary, subject to this second bank's counter-indemnity.
All guarantees have their individual advantages
… of a tenderer participating in a tender
Advance payment guarantee
… of an exporter to repay a prepayment
… of an exporter regarding full performance of a contract
… of an exporter related to their own (quality) guarantees
… of an importer, relating to contractual payments
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Please note that the transactions described in this section are based on guarantees under German law; legal rules outside Germany may differ in terms of substance and/or legal terminology.