Bank guarantees

Does your business partner require something to guarantee that you will fulfil an order in the agreed quantity or quality? Are you concerned that a customer may not pay for your goods or services? Make use of the services of UniCredit Bank, one of the leaders in providing bank guarantees. We will help you choose a suitable type of guarantee and formulate its wording according to your requirements.

What are bank guarantees used for?

Practically any type of trade, payment or delivery of goods or services in this country or abroad can be secured with a bank guarantee.
It eliminates risks faced by suppliers and buyers (for example, in case a business partner does not want to return an advance payment, does not fulfil the contractual obligations or delivery terms, or withdraws from the contract, etc.).
It will enable you to negotiate more advantageous contractual conditions, as you will be able to provide your business partner with a high-quality guarantee for your obligations.
It will secure risks even beyond the realm of trade and services (it will serve to replace of cash within a public procurement, a court security bond, auction security, and the like.).
You will save on costs and improve your company’s cash flow.

What will we do for you?

Our team of bank guarantee specialists, who work with the international guarantee rules issued by the International Chamber of Commerce, will serve you.
We will prepare and review the wording of the guarantee in a business contract, including individual and non-standard texts for guarantees corresponding to specific business cases and territories.
We will review the wording of a guarantee issued on your behalf and the ensuing potential risk.
We will help you to fill an order for providing a guarantee or pledge.
We issue guarantees in Czech, English, German, Slovak and Russian as standard practice, and in other languages upon individual agreement (in co-operation with colleagues within the UniCredit Group).
We will offer you expert training and presentations tailored to your needs and type of business.
You may also send instructions for issuing a bank guarantee electronically through direct banking channels.

Non-payment guarantees

For bids –used in tenders organized by ministries or public corporations for the supply of equipment or for the execution of different works. As a rule, a guarantee is required from the candidates of a tender in the event that the bidder is unable to fulfil the bid conditions or sign a contract upon winning a public tender.
For proper contract performance –secures the quality of works or supplies and the timely execution of the work.
For returning an advance payment –represents the bank’s obligation to return to the seller the advance payment or its portion provided by the buyer in case the seller does not supply the goods or does not execute the works agreed, or does not return the advance payment.
For securing a warranty (retention bond) –represents a guarantee for the commitment of the buyer to pay the amount retained resulting from a contract in case the seller declares that the buyer has not paid the retention bond.
Warranty bond –provided in cases where, according to the contractual conditions, security of the proper elimination of defects and backlogs of work within the warranty period is required.

Payment guarantees

For payment - securing a contractual obligation of the principal to pay (an invoice, documentary collection, loan, rental).
For rent – represents a commitment by the bank to pay the guarantee beneficiary (the lessor) a certain monetary amount in case its client (lessee) fails to pay the rental agreed under a rental contract, duly and in time.
For loan – represents a security for a loan extended by another bank.
Customs guarantees (common transit procedure / Community transit procedure, operations other than transit procedure) – secures the payment of a customs debt, customs duty, taxes and other payments for the customs authority in case an object intended for clearance through customs is not exported from the country and is not cleared.
For excise taxes – represents a commitment by the bank stating that a client will pay tax for the relevant period.
For tolls – represents a commitment by the bank to pay the guarantee beneficiary, the General Directorate for Roads and Motorways of the Czech Republic, a certain monetary amount in case the client: has failed to duly and timely perform its obligation to pay the road toll for the use of roads in the territory of the Czech Republic resulting from Act No. 13/1997 Coll. on roads, as amended, and/or failed to perform its obligation to return to the General Directorate for Roads and Motorways a functional and undamaged electronic device, which is part of the electronic tolling system in the Czech Republic, and/or failed to pay any of its debts under an Agreement on the conditions of subsequent payment.
For fuel distributors –issued according to the Act on fuels and petrol stations, and secures the arrears of a fuel distributor up to a guaranteed amount, which are recorded at the bodies of the Customs Administration of the Czech Republic or at other tax administrators as at the ninetieth day of the cancellation or extinction of a fuel distributor’s registration.
For alcohol distributors/persons obliged to label alcohol –issued according to the Act on the mandatory labelling of alcohol, and secures arrears up to a guaranteed amount which are recorded at the tax administrator or other public authorities as at the ninetieth day of the cancellation or extinction of the registration of the alcohol distributor/person obliged to label alcohol.
Bond to the credit of the State Agricultural Intervention Fund – secures an obligation of the client in the following areas, according to the Commission Regulation (EEC No. 2220/85):

licences (import/export)
interventions (purchase/sale)
private (public) storage
production/financial support
export subsidies
export subsidies for processed products

Special types of guarantees

Shared guarantees –a special type of guarantee issued on the order of one or multiple principals.
Commitment to grant a bank guarantee – represents a firm commitment by the bank to issue a certain type of guarantee in a certain amount with a certain validity.

An application for the issue of bank guarantees or commitments may be filed through the Internet banking system.