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Bonds, guarantees & standby letters of credit


Bonds, guarantees & standby letters of credit

Guaranteed payment for you and your customers: bonds, guarantees and standby letters of credit

As an importer, you need to be sure that the goods you order will be delivered on time and to the required quality. As an exporter, you like the peace of mind that your buyer has the ability to pay for your goods. These considerations are especially important at the beginning of a new business relationship. To help build your confidence as an importer or exporter, bonds, guarantees and standby letters of credit help to remove these uncertainties.



In order to mitigate the risks of international trade, you need to be sure that your customers will honour their debts; likewise, if you are the customer, you need to give your international partners an assurance of your ability to pay. Globally accepted, safe and competitively priced, bonds, guarantees and standby letters of credit are suitable for importers and exporters alike.

If you haven't found what you're looking for or have any additional questions please call us using the 'Get in touch' contact information.

Having bonds, guarantees or standby letters of credit in place, your international business partners can be assured that you have the ability to pay for any goods ordered.

Bonds and guarantees

When we issue a bond or guarantee on your behalf to your suppliers, they can trade with you safe in the knowledge that you can meet your financial commitments. Bonds and Guarantees give your international suppliers more reassurance when they deal with you, as long as they meet the terms of the sales contract.

To apply, download the Bank Guarantee application form (PDF, 163KB) and return it to your Relationship Manager.
Application subject to customer credit line facilities.

Standby letters of credit

In order to provide on-going confidence to your trading relationship with your suppliers, standby letters of credit are put in place for a specified period to support your normal open account trading. If you're trading with certain countries - notably the USA - you must use them. Standby letters of credit can be arranged by an importer, in favour of overseas suppliers and other counterparties.

Key benefits

Individually tailored - we can prepare specific solutions to match your exact needs

Accepted globally - guarantees, bonds and standby letters of credit are all issued by our international network or one of our global banking partners

Competitively priced - our international network extends to 37 countries, keeping transaction fees low

Proves your ability to pay - addressing a key issue for suppliers

Encourages more business - provides confidence to create trustworthy business relationships

Safe and efficient - you can raise bonds, guarantees and standby letters of credit electronically using our online trade banking service (subject to status)

To apply, download the Standby Letter of credit application form (PDF, 140KB) and return it to your Relationship Manager.
Application subject to customer credit line facilities.

You may need Adobe Reader to view some of these documents. Get Adobe Reader. Visit access.adobe.com.

If you haven't found what you're looking for or have any additional questions please call us using the 'Get in touch' contact information.

Having bonds, guarantees or standby letters of credit in place, your international business partners can be assured that you have the ability to pay for any goods ordered.

Bonds and guarantees

Bonds and guarantees are a commitment by us (or one of our international partner banks acting on our instructions) to make payment, providing the terms of the bond or guarantee are met. So if your customer fails to pay, then you can "call" the bond - in which case you will receive financial compensation from us.
You can choose from a wide range of bonds and guarantees according to your commercial trading circumstances.

To apply, download the Bank Guarantee application form (PDF, 163KB) and return it to your Relationship Manager.
Application subject to customer credit line facilities.

You may need Adobe Reader to view some of these documents. Get Adobe Reader. Visit access.adobe.com.

Standby letters of credit

In order to provide on-going confidence to your trading relationship with your buyers, standby letters of credit are put in place for a specified period to support your normal open account trading.

In some parts of the world, including the USA, standby letters of credit are legally required in place of bonds and guarantees. Standby letters of credit can be issued in favour of your customers in order to cover your contractual obligations.

Key benefits

Accepted globally - bonds, guarantees and standby letters of credit are all issued by our international network or one of our global banking partners

Proves your ability to deliver - with our backing, a bond illustrates that you can meet the terms of the contract

Highlights your financial strength - you can meet your contractual obligations and settle accounts

Efficient and secure - bonds, guarantees and standby letters of credit applications can be raised using MaxTrad, our online trade channel

If you haven't found what you're looking for or have any additional questions please call us using the 'Get in touch' contact information.