Trade services

Bank guarantee

Bank guarantee

Securing receivables

Bank guarantee

Securing receivables

Bank guarantees are recommended for:

  • companies specializing in local or foreign trade
  • suppliers and recipients of goods or services

Bank guarantee is used as securing various liabilities and receivables of partners in trade transactions.


Electronization of the proces of issuing bank guarantees

Starting from 1 January 2019, Citi Handlowy will implement a full electronization of the process of issuing bank Guarantees, i.e. the issuance of any type pf Guarantees in an electronic form based on application for guarantee submitted electronically. The written form of guarantees will be treated as an additional form to the electronic one, and as of 1 April 2019, it will be issued against an additional fee. Until 30 March 2019, the issuance of written guarantees will be free of charge, irrespective of whether the written form be an additional or an exclusive form of the guarantee.

  • Applications for a guarantee in electronic form can be submitted via Citi Trade Portal. For submitting an application in the written form, an extra fee is charged.
  • We encourage you to use the Citi Trade Portal to submit application for guarantee with simultaneous order for a guarantee in electronic form.
  • Citi Trade Portal is an electronic banking module CitiDirect BE, which enables filling various applications on the CTP platform and sending them to Citi Handlowy in electronic form (eApplication)
  • Information on the Citi Trade Portal can be found in the "Finance Management" tab - Electronic Banking - Citi Trade Portal
  • eGwarance is an electronic delivery of a guarantee document via Citi Secure Email and with a qualified electronic signature
  • Information on eGwarance can be found in the eGarantee tab.
  • A full electronization of the proces of Guarantees issuance means:
    • elimination of the time needed for delivering – written form of application to Citi Handlowy and of the guarantee issued on written form to addressee
    • when the revolving agreement for guarantee issuance is conducted and the guarantee wording agreed with Citi Handlowy – the time of guarantee issuance from time of submitting an electronic application to the delivery of the electronic guarantee will be 2 days at maximum.
    • lower transaction costs – elimination of the costs connected with the delivery of written applications and the courier costs for delivery of guarantee to addressee, and from 1 April 2019 – the costs of Citi Handlowy for the issuance of Guarantees in written form.

The most important features of the product

  • a bank guarantee is granted to ensure that the creditor (beneficiary) will receive a determined amount if the obligor (applicant) fails to perform his obligations
  • payment is made by the bank which has issued the bank guarantee
  • payment is made based on beneficiary’s payment demand containing the statement that the applicant has failed to perform his obligations
  • certain additional documents can be attached to the payment demand , e.g. a copy of the unpaid invoice, a copy of the transport document, if they are required under the terms and conditions of the guarantee
Most popular guarantees
  • tender (bid) bond (replacing a cash deposit)
  • performance bond (often replacing a warranty bond)
  • advance payment guarantee (securing the repayment/return of an advance payment)
  • payment guarantee (securing payment for delivered goods or services)
  • credit re-payment guarantee (securing repayment of credit)
  • customs guarantee (securing payment of customs liabilities)
  • lottery guarantee (securing payment of lottery and mutual betting prizes)
  • excise duty guarantee (securing payment of excise duty)

Are you interested in our offer?

Please contact your Relationship Manager. Detailed information can be also obtained from:

Małgorzata Samson
+48 (22) 657 79 72

The cost of the call depends on your local service provider.

Benefits

Bank guarantees as mitigator of trade transaction risks
  • The creditor (beneficiary) who has received a bank guarantee enjoys:
    • promise of payment by the bank-issuer of the guarantee
    • effective tool for debt enforcement
    • discipline imposed on the applicant to ensure properly and punctual perform his obligations resulting from the contract/agreement.
Bank guarantees as increasing of reliability
  • Guarantee issued by a renown bank strengthens the credibility of the applicant as assessed by the contractor
  • Guarantee enables the applicant to commence or continue effective cooperation with a trade partner
Guarantee as facilitation for the applicant
  • No need to freeze own cash, e.g. as cash deposit
  • Higher chances to receive a prepayment from the buyer
  • Possibility to obtain a credit

Additional information

Citi Handlowy may issue guarantees on terms and conditions defined on a case by case basis, subject to applicable law. We recommend our Clients who instruct issuance or who are to receive a bank guarantee being subject to regulations of the International Chamber of Commerce to read an appropriate regulation (Uniform Rules for Demand Guarantees (publication URDG 458 / 758) or International Standby Practices (publication ISP 98).

Before submitting a request, the Client should read the Rules and Regulations for the issuance of Bank Guarantees and letters of Credit , which specify the standard conditions on which Citi Handlowy issues bank guarantees. The Rules and Regulations can be found in the “Applications” tab.

All requirements / conditions to receive a bank guarantee and risks connected with a given guarantee are presented to the Client at the sales stage or after receiving an application for given bank guarantee.


Downloads

Below you will find requests / orders in pdf