A quick way to cover risks!
- Reduces default risks
- Helps build trust between business partners
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.
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
Price list and terms
Frequently Asked Questions
What is a guarantee?
Who is a guarantee intended for?
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?
Under what conditions can a guarantee be terminated?
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?
Is collateral required for a guarantee?
– 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