That's right.
- A Bank Guarantee satisfies the client’s and favouree’s needs (subject to the event/condition being covered under the guarantee) without the client needing to use their cash for deposit, bond or retention payments. It’s designed for businesses of all sizes who need to promise payments to a third party.
- Pricing for a Bank Guarantee includes a Guarantee Fee, which is charged on the Guarantee amount and covers capital charges, operating costs, risk-adjusted returns and the undrawn liquidity premium. It is optional to charge a Line Fee on the limit of the Guarantee Facility, and is more frequently charged when the Guarantee Facility will have a less predictable utilisation rate.
Bank Guarantee
Rate Build-Up
Fee
Not quite.
A Better Business Loan is a term debt product and it is not able to provide the security to a third party in same way as a Bank Guarantee.
Not quite.
A Bank Cheque can be provided but it does not provide the security around the checks and conditions completed prior to payment that are covered under a Bank Guarantee.
