A bank guarantee helps a company to secure various loans and payment obligations
Trust is very important in entrepreneurship. Sometimes there is a need for an additional guarantee. When this situation arises, we can help you and provide a bank guarantee. It is our irrevocable obligation to pay to the recipient of the guarantee immediately after the receipt of a written notice a sum that does not exceed the one indicated in the letter of guarantee.Apply for a letter of guarantee
Types of guarantees
As transactions and entrepreneurs are different, they also need different guarantees. This is why we offer various types of guarantee letters, so that you can choose the one that suits you best.
We ensure the fulfilment of such obligations of the applicant of the guarantee before the recipient of the guarantee, that arise from the agreement concluded between them. We do not intervene with the payments as long as the required payment terms are adhered to.
We assume the obligation to reimburse any damages caused by the applicant for the guarantee to the recipient of the guarantee, when the applicant accepts the offer of the recipient and presents an offer guarantee to them, but later withdraws from the offer or does not adhere to the terms and conditions of the contract concluded.
The said guarantee is a security for the buyer, i.e. the recipient of the guarantee, for the situation where the applicant of the guarantee cannot handle the delivery dates provided in the contract or is not able to deliver the agreed goods. In such case the recipient of the guarantee may demand that the bank pays the sum provided in the letter of guarantee.
The fulfilment guarantee is a security for the buyer, i.e. the recipient of the guarantee, for the situation where the applicant of the guarantee is not able to fulfil the terms and conditions agreed in the contract for the agreed term. A fulfilment guarantee is similar to the prepayment guarantee. The difference being that, in the case of a fulfilment guarantee, a prepayment for the benefit of the seller is not required.
This gives the buyer, i.e. the recipient of the guarantee, the right to file a claim when defects are revealed in the purchased goods during the warranty period, but the applicant of the guarantee refuses to eliminate them.
Secures the guarantee applicant’s obligations before the Tax and Customs Board.
This ensures the obligations of the applicant of the guarantee before a lessor arising from a rent or lease agreement.
LHV is willing to issue a guarantee when the applicant of the guarantee is creditworthy. In order to apply for a guarantee, the regular loan application procedure needs to be passed, i.e. the required documents presented and guarantee agreements concluded.
If you want to apply for a loan in the sum of more than €250,000, please contact us so that we can discuss the options.