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Guarantees and Suretyships
You have given your domestic or foreign customers a contractual performance or payment undertaking. We provide the right guarantee for your business.As part of existing credit lines, we issue the guarantees you require in the form of abstract guarantees in domestic and foreign business, accessory suretyships pursuant to German law, and special and mixed forms. Our long-standing experience in guarantee business has given us in-depth knowledge of what is required in each particular case. We would be pleased to provide you with comprehensive management services for your guarantees.
Suretyships and guarantees can be issued in various forms such as:
- Direct guarantees
- Guarantees forwarded by a third-party bank
- Indirect guarantees
- Counter-signed guarantees
Our range of services:
- Comprehensive advisory aimed at avoiding possible risks and disadvantages
- Close monitoring of all existing guarantees. This service includes notifying you of impending expiry dates and – if possible – securing the early release from liability from the foreign bank or the beneficiary.
- Comprehensive support in 'tailorin' special guarantee texts, at as early a stage as the contract negotiations and thus before the guarantee document is drawn up.
- Upon receipt of a demand for payment under your guarantee, we immediately notify you by telephone and ask for your comments. Arguments and documents presented in good time, i.e. without delay, can thus be examined and, if possible, taken into account before payment is effected.
AvalOn
Your particular advantage in guarantee business: our web-based tool AvalOn. AvalOn contains a list of dates and deadlines concerning your guarantees and offers various sorting options. Information and instructions relating to a guarantee selected from this list can be transmitted straight to us, quickly and securely. AvalOn also allows you to conveniently place your guarantee orders with us or download your guarantee portfolio as a file for further processing.
Guarantees in international business
International business often requires that indirect guarantees be drawn up, either because national provisions call for this form of guarantee or the foreign parties to the contract insist upon guarantees issued by domestic banks, as is the case in most of the Arabic countries. Whilst this form of guarantee offers the beneficiary the advantage of the guarantee being automatically subject to the laws of the respective country, with any demands for payment being "more convenient" and handled in accordance with the local customs, it also implies certain disadvantages for the German counterparties. This is particularly the case where the instructing German bank must expressly submit to foreign law with respect to its counter-guarantee (as is currently the case for guarantees drawn up in Algeria, Yemen, Saudi Arabia or Syria) or in cases where it is obliged to integrate certain provisions into its counter-guarantee that exceed the normal scope of liability.