Bank guarantees

an instrument to ensure that the client (the principal in the guarantee) meets his obligations towards the counterparty (beneficiary in the guarantee)

Bank guarantee — an instrument to ensure that the client (the principal in the guarantee) meets his obligations towards the counterparty (beneficiary in the guarantee). If the beneficiary provides the bank with a formal payment request, in line with the conditions laid out in the guarantee, attesting to the breach of contract by the client, the bank will pay out under the guarantee.

A guarantee is useful for:

  • companies to participate in tenders, central procurement biddings, including those of public authorities in the ProZorro system;
  • sellers of goods/services – to secure obligations for the timely delivery of goods/services under the terms of the underlying contract;
  • buyers of goods/services – as a way to have the payment obligations guaranteed for the counterparty and to get the option to defer payment (trade credit) in the contract, allowing better use of working capital;
  • sellers of goods/services if advance payment is required for an order – to guarantee the return of the advance payment to the buyer in case the contractual obligations to deliver the goods are not met;
  • tour operators and travel agents to obtain required licenses and to guarantee performance of their obligations vis a vis clients.

Advantages of bank guarantees from Pivdenny Bank:

  • The possibility to obtain trade credit from counterparties (deferred payment).
  • Ensure proper performance of the contractual obligations by the counterparty.
  • Confirmation by a large and reputable bank that your company will meet its contractual obligations.
  • Ability to ensure that contractual obligations are met without advance payment.
  • Bank guarantees are a much less costly tool (compared to lending or factoring).
  • Professional staff – our trade finance experts will help you structure a deal with your counterparty to reflect all the required parameters of the bank guarantee in a timely fashion.
  • Possibility to get a guarantee from a first-class European bank against a counter guarantee from Pivdenny Bank.

Tender guarantees

performance guarantees of terms and conditions of tenders, including via the ProZorro system

Payment and performance guarantees

guarantees to secure payment, contractual obligations and/or the return of advance payment

Guarantees for the participants of the energy market of Ukraine

Bank guarantee for participants in the electricity and natural gas market

Guarantees for tour operators and agents

this form of guarantee is required in order to get a license under the «On tourism» law. It ensures that the operator/agent meets his obligations vis-à-vis the consumers