A quick way to cover risks!

  • Reduces default risks
  • Helps build trust between business partners
Apply for the guarantee

General information

Trust is very important in business, but sometimes additional guarantees are still needed. A guarantee helps a company secure various risks and obligations arising from a contract.
The purpose of a guarantee is to provide confidence and quick financial compensation in the guaranteed amount if the contractual partner fails to fulfil their obligations.

Finora offers the following guarantees:

  • Tender guarantee
    A tender guarantee secures the reimbursement of costs to the tender organiser (beneficiary of the guarantee) for the event that the tenderer withdraws the tender or does not sign a contract under the offered conditions.
  • Performance guarantee
    A performance guarantee is granted to the principal in a contract (beneficiary of the guarantee) for the event that the applicant for the guarantee is unable to perform the contract within the agreed term.
  • Warranty period guarantee
    A warranty period guarantee is given as a guarantee to a customer (beneficiary of the guarantee) for the event that defects are discovered in the purchased goods or services during the warranty period, but the applicant for the guarantee refuses to eliminate the deficiencies.
  • Financial guarantee
    A financial guarantee is given to the beneficiary for the event that their contractual partner is unable to fulfil their obligations. For example, a financial guarantee for waste storage: a waste management company that wants to apply for a waste storage/handling licence must, according to the Waste Act, submit a letter of guarantee with the application.
  • Guarantee Limit
    In the case of limit, it is possible to apply for various guarantees more simply and faster than usual. There are no additional obligations or expenses by setting the limit (e.g. contract or limit fee). Real costs are incurred only if the limit is used.

The above is not an exhaustive list of the guarantees we offer. If the guarantee you need is not listed, please don’t hesitate to contact us and together we will find a suitable solution for you.

Benefits of a guarantee

  • Helps mitigate the risks arising from a contract
  • Provides confidence and quick financial compensation
  • Helps avoid risks associated with advance payments
  • Suitable for covering a variety of risks
  • Ensures the fulfilment of contractual obligations

The process


Submit a guarantee application online and enclose the underlying contract.


In the case of a positive decision, we will send you an offer (and, if applicable, a draft letter of guarantee for approval by your contracting partner).


If the conditions are acceptable, we will sign an agreement.


After the guarantee agreement has been signed and the guarantee invoice paid (risk fee + agreement fee), we will issue a letter of guarantee.


If everything goes according to the contract, the guarantee will expire on the end date.


If the applicant for the guarantee defaults on their contractual obligations, we will immediately pay the requested amount (up to the guarantee amount) to the beneficiary of the guarantee after receiving a written claim.


Guarantee claims paid by Finora (to the beneficiary of the guarantee) are subject to compensation by the applicant for the guarantee (under the conditions of the guarantee agreement).

Price list and terms

according to the underlying contract
generally from 3 months
from 3% calculated annually on the amount of the guarantee from the issuance of the guarantee until the end date, min. €100 (determined individually for each applicant)
0.3% of the guarantee amount, min. €100
not always required (surety by a natural or legal person if necessary)
* Extending the term of the letter of guarantee and increasing the amount is based on the risk fee for the guarantee.

Frequently Asked Questions

What is a guarantee?

A guarantee is the bank’s obligation to pay the beneficiary the amount of money specified in the letter of guarantee in the event that the applicant for the guarantee defaults on their contractual obligations to the beneficiary.

Who is a guarantee intended for?

A guarantee is suitable for mitigating the risks associated with contractual transactions. The suitability of a guarantee depends on the type of guarantee.
A tender guarantee is suitable for the procurer (procurement organiser) in the case the tenderer withdraws the tender or refuses to sign the contract under the proposed conditions.
A performance guarantee and a financial guarantee are suitable for the buyer of goods or services in case the seller does not fulfil their contractual obligations.
A warranty period guarantee is suitable for the buyer of goods or services in the event that the seller fails to fulfil their warranty obligation.

Can the issuer cancel the guarantee?

By issuing a letter of guarantee, the bank assumes an irrevocable obligation, i.e. the bank cannot cancel the guarantee. A given guarantee can only be cancelled with the beneficiary’s permission.

Under what conditions can a guarantee be terminated?

A guarantee ends when the letter of guarantee expires, the guarantee amount has been paid in full, or the beneficiary has cancelled the guarantee.
In the case of prematurely terminated guarantees, the risk fee paid for the unused period is refunded.

For what amount can a guarantee be requested?

There are no restrictions on the amount of a guarantee. The minimum fee, the agreement, and risk fees should be considered when applying for a small guarantee.

Is collateral required for a guarantee?

Collateral is not always required for a guarantee, but as a guarantee is an irrevocable obligation for the bank, we treat guarantee applications in the same way as applications for any other credit product. The need for collateral depends on the amount and duration of the guarantee and the degree of risk that the guarantee will be paid out.
Acceptable collaterals:
– Mortgage on immovable property
– A deposit in the guarantee amount
– Registered security over a means of transport
– Surety by a natural or legal person
– Other collaterals accepted by Finora Bank

How much does a guarantee cost?

When applying for a guarantee, the agreement fee (according to the price list) and the risk fee (from 3% per annum) should be considered. The risk fee is determined individually and depends on the duration of the guarantee, the level of risk of payout, and the quality of guaranteeing recourse claims.

Can the term of validity for a guarantee be extended?

The guarantee period can be extended, but the bank may ask for additional documents to make a new decision. Extension is usually subject to an agreement fee and risk fee depending on the extension period.

What happens if the bank pays out the guarantee amount?

Guarantee claims paid by the bank (to the beneficiaries of the guarantee) are subject to compensation by the applicant for the guarantee (under the conditions of the guarantee agreement). The applicant for the guarantee undertakes to pay contractual interest on a paid guarantee claim until the claim is compensated. Usually, the interest period is up to 2 months, after which the applicant for the guarantee must conclude a payment agreement, or late interest will apply.

Apply for the guarantee

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