Bank guarantee ensures smooth partnership
A bank guarantee functions as security in many kinds of contracts. For instance, it may be issued as security for 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.
Bank guarantees help in financial risk management especially in the case of major projects and new contracting parties. The advantage of a bank guarantee is that you don’t have to prove to your partner your company’s creditworthiness or ability to meet the obligations laid down in your contract.
By offering your contracting party a bank guarantee from Nordea you can prove to them that they are dealing with a reliable counterparty. You can also require a bank guarantee from your contracting party if you want to be sure that your partner will be able to fulfil the contract terms and conditions.