Are you finding a customer hesitant to sign a contract because they have concerns regarding your company’s credibility? Perhaps you are bidding on a huge project where there are serious financial implications if you fail to deliver? If so, you should consider a bank guarantee from Absa.
A bank guarantee from Absa will provide credibility and surety to any deal you have with your clients by ensuring that, in the event that you are unable to deliver on your promises of services, equipment or products, your customer will be reimbursed for the value of what was required.
A bank guarantee from Absa will also help you manage your cash flow since you won’t have to set aside capital to pay for unexpected mishaps, such as losing products when shipped, and are likely to have to pay a smaller deposit to secure the contract.
A Bank Guarantee could be the right choice if you:
- Have a customer who is concerned about your capacity to ship equipment or products to them
- Would like the credibility a bank guarantee brings to your negotiations with customers
- Would like to offer additional surety to your customers
- Would like to minimise the amount of money you need to put aside to deal with defaulting on customers
- Would like to decrease the amount you need to deposit as part of a contract or tender
Did You Know?
- Contract Guarantee, should you become unable to meet your financial obligations, a contract guarantee will ensure that your customer is reimbursed so that they may seek a third party to complete any work you started.
- Performance Guarantee if you cannot, or fail to, comply with any contractual obligations, a performance guarantee ensures suitable payment to your customer.
- Shipping guarantee, if you are shipping to a client, but are unable to pay for the delivery of the equipment or products, the shipping company may hold on to the goods until these bills have been paid. A shipping guarantee ensures that your customer will be able to obtain their goods in such a dilemma.
- Customs and Excise Guarantee occasionally, you may need to obtain equipment from overseas to perform a temporary contract or task. You can avoid customs duty on the equipment by obtaining a customs and excise guarantee, which will prevent you from selling it locally once the contract or task has been completed.
- Retention Guarantee as it is not uncommon for payments on large contracts to be made in stages. In the event that your work proves to be sub-par or fails to meet the expectations of your customer, a retention guarantee will reimburse the client any of the stage payments they may have made prior to the deficiency being discovered.