A bank guarantee offers you the security that an agreed obligation will be fulfilled. If not, you still get paid. This is because the basic principle for every bank guarantee is that a bank is the guarantor.
Let’s say you enter into an agreement with someone to pay for something or do something in the future. The other party to the agreement wants to be sure that they will indeed receive what they are entitled to under the agreement. A bank can then, at your request, act as guarantor and provide security for your fulfilment of the agreement. If the other party ends up claiming under the bank guarantee, the bank will pay them as per the terms of the bank guarantee. The amount the bank pays out on a guarantee will always be collected from you.
Bank guarantees are common when you do business internationally. Also for transactions involving large amounts, complex projects, future obligations to deliver, and/or when dealing with a new business partner.
When we provide a bank guarantee, we will block your account equal to the guaranteed amount.
The party that can claim the bank guarantee, i.e. generally the contractual party, is referred to as the ‘beneficiary’. The bank undertakes a payment obligation towards the beneficiary.
A standard bank guarantee is quick and easy to apply for online.
If you need a bank guarantee with other requirements than those listed above, you can use our customised bank guarantee. This may be the case when, for example, the beneficiary has specific requirements for the guarantee text that differ from our standard guarantee text.
We have listed all types of bank guarantees. There is bound to be a bank guarantee on this list that is right for your situation.
We charge a fee for a bank guarantee. Take a look at all our fees.
| Situation | |
|---|---|
| Standard or customised?: | standard bank guarantee |
| Ordered through: | online standard ABN AMRO form |
| Beneficiary (counterparty): | based outside the Netherlands |
| Guaranteed amount: | € 20.000 |
| Duration: | 1 January to 20 April |
| Guaranteed cover: | credit facility |
| Fees | |
|---|---|
| New application: | € 125 once only |
| Postage: | € 40 once only |
| Guarantee commission**: | € 50 per month |
| TOTAL for the whole term (subject to changes) | € 365 |
*The guarantee commission is 1.50% (term < 12 months) per year with a minimum of €50 per month. This is the rate that is charged if the guarantee is covered by a credit facility. The guarantee commission is 1.25% per year with a minimum of €50 per month if the guarantee is cash covered. The guarantee commission is settled on a monthly basis. Part of a month is considered a full month.
As the applicant, you can amend a bank guarantee.
Please note: if the amendment is to the detriment of the counter party, we will ask their consent.
Would you like to cancel a bank guarantee that does not have an expiry date or cancel a bank guarantee before the expiry date of the guarantee? We will need a waiver from the beneficiary. By signing a waiver, the beneficiary accepts that they can no longer exercise any rights under the bank guarantee and that we are released from our obligations.
As soon as we have received the confirmation, the beneficiary ceases to be able to exercise rights under the guarantee.
Download a standard letter of release form for this. Please check the conditions in the bank guarantee text for details. The form must be signed by the legal representative of each beneficiary involved.
After the expiry date of the guarantee, we need approximately 10 days to settle this guarantee in our records.
A direct or indirect guarantee issued under foreign law is often subject to a separate procedure. It is not always possible to close such a guarantee after the expiry date.
A guarantee/counter-guarantee can in some cases only be released once the beneficiary has returned the guarantee to the issuing bank.
If you have any questions, please call our Trade Finance Operations on +31 (0)10 402 37 00 (local rates apply).
You will need these details to start your application for a bank guarantee. Now you can fill in the application form in one go.
Please note:
Carefully read the information above before applying.
Read the checklist above to find out what you will need for your application.
Your answers to the first questions determine whether you can apply for a standard or a customised guarantee.
Carefully read the information above before applying.
Read the checklist above to find out what you will need for your application.
Your answers to the first questions determine whether you can apply for a standard or a customised guarantee.
Do business with confidence.
For example, change duration/expiry date.
Do business with confidence.
For example, change duration/expiry date.
The online forms are only available in Dutch. Do you need an English form? Please contact our Trade Finance Operations on + 31 (0)10 402 3700.
You can also use bank guarantees internationally. Watch the video to see how this works.
