Normally used for the sale of goods and should be considered for UK sales over £10,000, and for non-UK sales over £5,000. The guarantee can stipulate specific terms and conditions.
A bank guarantee may be requested if there is a risk of non-settlement, or if the sale involves the shipment of goods that require customer checks and approval before payment.
Under a bank guarantee, if the customer (the buyer) is unable to make the payment to us (the seller), then the bank would pay the fixed amount to us if the customer does not meet the obligations under our contract.
Latest version 16 April 2024