Business Help centre

What is a letter of guarantee?

Your international transactions may sometimes require certain commitments demonstrating your solvency. The letter of guarantee is an irrevocable commitment by the bank to provide your customer with a monetary benefit in the event that you are unable to meet your financial or contractual obligations.

How does it work?

The bank makes a payment to your customer (the beneficiary) upon presentation of documents proving a default or failure on your part.

We offer you five tailor-made guarantee models:

Bid guarantee
Performance guarantee
Advance payment guarantee
Financial guarantee
Standby letter of credit

For more information, visit our page Managing your commercial transactions.

Related questions

How long does it take before I have a monetary adjustment following a cancellation or modification of a foreign exchange contract? Learn how long it takes for a monetary adjustment following a cancellation or modification of a foreign exchange contract.
Why don’t I see the rate for my contract in my foreign exchange platform? Get more information from your foreign exchange trader if your contract rate is not displayed.
In what types of situations should I talk to my trader? Discover the kinds of situations where you should consult your foreign exchange trader.
How do I correct an error during a foreign exchange transaction? Find out how you can correct an error in a foreign exchange transaction.
When will my transaction be visible on the foreign exchange platform? Your transaction will be visible on the platform as soon as its confirmed.

Find answers to your questions