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Bonds, Guarantees & Indemnities

Services that can support your business by demonstrating your financial credibility and ability to meet contractual obligations.

Is it right for you?

Through our sector expertise we understand the importance of Bank Guarantees. As each business and transaction is different, we can work with you to tailor the wording of our Guarantee to support your requirements.

  • Help provide specialist support for UK or overseas contracts
  • Guarantees can be for any amount (subject to availability of suitable facilities) and in any freely traded currency
  • Bonds and Guarantees can usually be issued in the buyer’s currency
  • You want to provide assurance that you can meet your contractual obligations
  • Help tender for business that may otherwise have been out of reach

How it supports your business

  • Enables you to provide your buyer with a financial commitment to supply goods or services as agreed under a contract
  • Demonstrates your financial credibility and underpins your ability to meet contractual obligations
  • Enables you to make your proposition more attractive to your buyer
  • Allows you flexibility on negotiating contract terms because our Bonds and Guarantees can be issued in the buyer’s currency
  • Bonds, Guarantees and Indemnities can be issued by Barclays from the UK as well as through our extensive branch network and partner banks.
  • Our wide range of Bonds and Guarantees can support you throughout the life cycle of the contract
  • Provides a choice of standard or bespoke wordings, enabling us to give you and your buyer the Bond or Guarantee that meets your specific needs

Barclays can issue most recognized forms of Bond and Guarantee, including the below common examples:

Tender Guarantee (Bid Bond): Collapsed

Indicates to your buyer that you’re a serious bidder for a contract and is often required when a seller submits a tender.

 

Advance Payment Guarantee: Collapsed

Guarantees repayment of any funds your buyer has advanced to you in the event of default under the contract. This is normally between 10% and 20% of the contract price.

Performance Guarantee: Collapsed

Guarantees a penalty sum payment in the event of a buyer claim when terms of the contract have not been fulfilled. This type of guarantee is often required whilst a Tender Guarantee is still in place, and may be issued in addition to an Advance Payment or Retention Guarantee.

Retention Money Guarantee: Collapsed

Enables early release of funds that the buyer would otherwise withhold from contract payments until completion of any warranty period contained in the contract.

Customs Bond: Collapsed

Allows payment of duty due on imported goods to be deferred.

Standby Letter of Credit (SBLC): Collapsed

Issued in some countries as an alternative to a Guarantee.

Important information

  • For all the products in our range of Bonds and Guarantees we will provide you with a documented facility setting out our terms and conditions
  • You will need to provide an indemnity to us to cover us for demands, costs and expenses in relation to the guarantee
  • The products referred to in this webpage are subject to separate terms and conditions

Talk to us

Find out more about our Bonds, Guarantees and Indemnities by talking to your Relationship Director.

New to Barclays? Our experienced UK-based team can listen to your business need, offer assistance on-the-spot or put you in touch with the right specialist at Barclays. Call us on:

0800 015 4242*

Alternatively we can call you back or you can email us with your query.

Related products

Letters of Credit

Securely settle overseas trade by protecting yourself against payment default and trading risks.

Trade Collections

Receive and make payments efficiently and securely for your exports and imports.

Trade Finance

Improve your cashflow and your trading potential both in the UK and overseas.

Working Capital

Ease cashflow fluctuations with a range of products that can support you in covering everyday expenses or planning for growth.

How can we help?

To discuss switching to Corporate Banking at Barclays, call us on: 0800 015 4242*