A Bank Guarantee is a way for companies to prove their creditworthiness. It promotes confidence in a transaction that will greatly encourage the process.
A Bank Guarantee is a way for companies to prove their creditworthiness. It promotes confidence in a transaction that will greatly encourage the process. Bank guarantee is one of the most commonly used collateral instruments for mitigating business risks. It is a written declaration where a bank agrees that it shall satisfy a lender up to the amount specified in the guarantee deed if a borrower fails to perform his obligation or if other conditions specified in the guarantee deed are met. A bank guarantee covers the seller’s risks (inability to pay debts), as well as the buyer’s risks (failure to deliver goods, failure to deliver goods in the required quality, delayed delivery, etc.)
The FUND RA offers a variety of guarantee instruments from our partners financial institutions and banks, covering risks of a single or several projects. Our guarantees unlock additional financing for small- and medium-sized enterprises or mid-caps by covering a portion of possible losses from a portfolio of loans. In some cases, the FUND RA also guarantees possible losses from a project to unlock additional investments.