International BusinessGuarantees
When you're trading internationally and don't have established relationships, guarantees reduce the risks for each party.
Manage international trade risk
A guarantee or bond, as they are sometimes known, provides the beneficiary with acceptable security if the applicant (you) fails to fulfil its obligations in the underlying contract.
Extensive experience, attractive terms
- At HSBC we have extensive experience of guarantees, together with a worldwide network of group offices and correspondent banks to meet your domestic and international needs
- Our global presence means we can provide you with attractive terms on foreign guarantees
- Our specialist Guarantees Team based in London can provide you with valuable support for your business.
Commonly used guarantees
When you're trading internationally you may often come across the following guarantees. We can arrange these and guarantees to cover many other kinds of risk.
Performance Bond
- The most common type of guarantee
- Usually required for the duration of a contract, plus a grace period to allow the beneficiary to make a demand in the event of non-performance of the obligations covered by the guarantee.
Tender Guarantee/Bid Bond
- Often called for in support of contract tenders, particularly in international trade situations
- Provides the beneficiary with a financial remedy if the applicant fails to fulfill any of the tender conditions.
Advance Payment Guarantee
- Used where the applicant calls for the provision of a sum of money at an early stage of the contract
- The beneficiary can recover the amount paid in advance, or part thereof, if the applicant fails to fulfil their underlying contractual obligations.
VAT Bond/Duty Deferment Bond
- Provided to HM Revenue & Customs enabling the applicant to import goods from outside the EU without the immediate payment of duty or tax.
Facility Guarantee
- Enables an applicant to secure banking facilities for a subsidiary, associate company or personal account in other countries.
Important information
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Contact our specialist Guarantees team
To learn more about Guarantees and HSBC EasyTrade:
- Call us on:
0800 78 31 300 - Textphone 1800 108457 125 563
- Email uktradeservices@hsbc.com
Contact our specialist Guarantees team
To learn more about Guarantees and HSBC EasyTrade:
- Call us on:
0800 78 31 300 - Textphone 18001 08457 125 563
- Email: uktradeservices@hsbc.com
- Guarantee application form (PDF)
- Standby DC application form (PDF)
- Don't have Adobe PDF Reader? Download Adobe Reader
Why choose HSBC?
- Access over 8,000 local experts in 63 markets
- Maximise international opportunities and guard against risks
- Manage your global banking from a single logon with our award winning HSBCnet
- Support and information including online guides, resources and forums.
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