Frequently asked questions about bank guarantee

What is a bank guarantee?

A bank guarantee is an undertaking issued by the bank in favour of your Finnish or foreign contracting party. With its undertaking, the bank commits to a monetary liability for the fulfilment of your company’s contractual obligation. A bank guarantee is an easy and frequently used form of security.

How to apply for a bank guarantee?

If you are a Nordea Business user, apply for a bank guarantee directly in netbank. 

If you are not yet a Nordea corporate customer, become a customer online first.

Why to use a bank guarantee?

A bank guarantee adds confidence to a contractual relationship. A guarantee issued by the bank to its customer can also be considered an indication that the bank trusts the customer’s ability to fulfil its contractual obligations for which the bank guarantee has been issued as security.

What purposes can a bank guarantee be used for?

A bank guarantee functions as security in many kinds of contracts. For instance, it may be issued as security for an order, a delivery, a guarantee period, a contract price payment, a rental payment for business premises or for compliance with some other contractual obligation. Your company may also use a bank guarantee to meet its statutory security obligations.