Find out which Bank Guarantee is suitable for your situation. All these Bank Guarantees can be applied for online.
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.
When entering into a property rental agreement, the lessor often requests security in the form of a deposit or rental guarantee. With a rental guarantee, you give the lessor the security that you will comply with your rental obligations. ABN AMRO only issues rental guarantees with its own text in the Netherlands.
Please note! With a guarantee for an indefinite duration you are entirely dependent on the lessor’s willingness to return the rental guarantee to the bank and release the bank from its obligations.
If you want to offer your counterparty the security that you will honour what you committed to in your quote, offer or tender bid, you can do so with a bid bond.
With a bid bond, the bidding party agrees to accept an awarded contract as per the terms, conditions and price quoted in the tender bid. A bid bond is often required for major projects for which multiple parties can submit a bid.
By having a bank issue a bid bond, the bidder shows that they are a serious candidate for the project and able to actually handle the project. If the bidder is unable to meet their obligations, the beneficiary of the bid bond can claim the guaranteed amount, which is generally five or ten percent of the tender amount.
When the bid bond expires often depends entirely on occurrence of the events specified in the bid bond text instead of on a fixed expiry date. It can sometimes be difficult to establish whether or not events specified have actually occurred, which may complicate the granting of release from obligations under a bid bond.
A bid bond is used only for international transactions. An unconditional letter of intent is sometimes used for transactions in the Netherlands.
If you want to offer your counterparty the security that you will honour what you committed to in your quote, offer or tender bid, you can do so with an unconditional letter of intent. The party to which you give the unconditional letter of intent will have the certainty that they will receive a bank guarantee as soon as you are awarded the order or contract.
The obligation to submit a bank guarantee is unconditional and irrevocable. Accordingly, on issuance of the letter of intent the amount specified in the letter of intent will be blocked immediately.
A letter of intent is sometimes used for transactions within the Netherlands. A bid bond is used for international transactions.
You will be buying products and/or services and your business partner wants to receive security for your payment obligations. With a payment guarantee/bond, you give your trading partner the security that you will meet your payment obligation.
If you want to give your business partner the security that you will use their advance payment for the intended purpose, you can provide an advance payment guarantee/bond. Always bear in mind that providing a advance payment guarantee/bond means that the guaranteed amount will be blocked in your credit facility or the credit balance in your account as soon as the bank issues the bond. From that moment on the bank starts charging the commission.
This is the procedure regardless of whether you have already received the advance payment from your business partner. So make sure you have sufficient funds available when applying for this type of bond.
This type of bond serves as assurance that the project will be carried out or the goods and/or services will be delivered in accordance with the terms of the contract. The guarantee/bond will generally be equal to between five and ten percent of the contract value.
The duration of the guarantee/bond is generally the same as the project duration, but it is sometimes extended by a maintenance or warranty period. While both the bank and the client prefer a fixed expiry date, this is not compulsory.
You have provided a service or product and agreed maintenance or warranty terms with the buyer that will apply over a certain period after termination of the service or delivery. The buyer may not have to pay the final instalment of the purchase price until after expiry of the maintenance or warranty term.
Do you want to come to an arrangement with your buyer where they pay the final instalment sooner and give them adequate assurance that you will meet your obligations under the maintenance agreement and warranty? You can offer them a retention guarantee/bond.
A notary guarantee gives the seller of a property the assurance that the buyer will comply with the purchase contract, such as by paying the purchase price.
If you want to offer customs the security that you will meet your payment obligations, this is possible with a customs guarantee. One possible benefit for the importer is that their trucks can cross borders without losing time getting goods cleared. The customs district can give permission to postpone payments.
Please note! A customs guarantee is a 'revolving' facility. Meaning that the amount for which it has been issued will not be decreased when the bank pays out to customs following a claim under the customs guarantee. This means that customs can claim the full amount again in the future, provided that all the terms for claiming under the guarantee have been complied with.
A customs guarantee is basically a security deposit and can be cancelled, subject to the notice period specified in the customs guarantee.
If you want to be sure that you can lift or prevent a seizure so that it will not obstruct your operations, you can apply for a litigation guarantee. This is a conditional bond that is payable when a 'trial' has been conducted before a court of law or arbitration committee. The duration of this bond depends on the court or arbitration rulings.
When importing goods, the required bill of lading (document of title) may be missing. The bill of lading (B/L) is a transport document for sea freight that is drawn up by the shipping company. By providing a missing bill of lading guarantee, you can protect the shipping company against any financial consequences of delivering goods without presentation of a bill of lading. The importer can then take receipt of their goods right away.
With a product board guarantee, you can take care of formalities to get product board clearance for your products without having to pay a deposit.
