State bank guarantees are safe and secure!

To secure a state contract, the most popular method today is a bank guarantee. Such a document can protect the parties from unforeseen obligations. We can say that bank guarantees are a shield, behind which both the customer and the performer can hide. The procedure for obtaining this document is very well known to all participants of various tenders. But what to do to those who face it for the first time?

What is hidden under this term?

Bank guarantees are the insurance of customers in case of unfair performance of obligations by the contractor. In other words, the presence of such a document may indicate the serious intentions of the performer and his solvency. The customer can not doubt that the work he needs will be performed on time and properly. A bank guarantee of performance of obligations compels the bank to pay a certain amount stipulated in the contract in case of unfair performance of the work of the firm that won the tender, or in case of unforeseen circumstances. A bank institution becomes a guarantor, and that is why state contracts concluded for millions of dollars require the provider to do this kind of financial security.

State bank guarantees - this is a fairly strong argument with participation in the tender. They exclude probable conflicts from both sides (both the customer and the performer). The term of the bank guarantee is usually prescribed for the entire period of work. He shows both sides how long this document will have legal weight and protect them from unforeseen situations.

The guarantee can not be withdrawn, which is why it is so important to the state customer. The issuing bank simply does not have the right to revoke it or change its terms unilaterally. As a rule, all bank guarantees are documents that do not require security, that is, they are issued without pledge of any money or securities. The contract comes into force from the moment of its issue. The most popular form required by government customers as collateral is the guarantee of performance of contractual obligations.

How to get?

To receive a bank guarantee, you must first choose a guarantor bank and properly draw up all the documents. In different institutions, different ways of registration and requirements for the company-executor. Therefore, it is necessary to carefully read them to get a bank guarantee as quickly as possible. With a properly assembled package of documents, the list of which is very long, the issuance of a guarantee on the hands of the executor is usually carried out within one to two days. You can also contact professional companies specializing in this type of security. They will help you to collect a package of documents and check it, so that you do not go twice upholstering the thresholds of the guarantor bank. Moreover, some offices will be able to provide not only services for collection and verification of documents, but also to speed up the decision making by the bank.