16 policies in this group

Trade Finance & Guarantees

Bank instruments and guarantees that help deals close: letters of credit, bonds, proof of funds and import finance, arranged through our banking partners and explained step by step.

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Bank Guarantees

A bank's formal promise to pay a beneficiary if you or your counterparty fail to meet a contractual obligation, giving both sides confidence to proceed.

Trade Finance & Guarantees

Standby Letter of Credit

A bank's commitment to pay a beneficiary if their client defaults on an agreement, a fallback guarantee rather than a primary payment method.

Trade Finance & Guarantees

Documentary & Deferred Letters of Credit

Payment released once shipping documents are presented, with deferred terms letting the buyer settle at an agreed later date.

Trade Finance & Guarantees

Red Clause Letters of Credit

Lets an exporter draw an advance before goods are shipped, helping fund production or purchase ahead of delivery.

01 / 16

Bank Guarantees

A bank's formal promise to pay a beneficiary if you or your counterparty fail to meet a contractual obligation, giving both sides confidence to proceed.

What's Covered

Advance payment, performance, and retention guarantees
Tender and warranty guarantees
Issued through our banking relationships on your behalf
Structured against the specific contract they support

Full Details → Get a Quote

Who This Is For

Businesses that need to give a counterparty a bank-backed assurance before a contract will proceed.

Good to Know

The guarantee type needs to match the contract clause requiring it. Using the wrong one is a common and avoidable delay.

Usually Not Covered

Claims made outside the guarantee's specified validity period
Obligations not described in the underlying contract
Fraudulent demands identified as such under the guarantee's terms

02 / 16

Standby Letter of Credit

A bank's commitment to pay a beneficiary if their client defaults on an agreement, a fallback guarantee rather than a primary payment method.

What's Covered

SBLC issuance as a fallback payment guarantee
Structuring against trade or financial contract terms
Use as security for a wide range of commercial obligations
Coordination with the beneficiary's bank on wording

Full Details → Get a Quote

Who This Is For

Businesses needing to reassure a counterparty that payment is guaranteed if the primary agreement isn't honoured.

Good to Know

An SBLC only pays out on default. It isn't drawn down in the ordinary course of a transaction the way a documentary credit is.

Usually Not Covered

Demands made after the SBLC's expiry date
Non-compliant documentation under the instrument's terms
Obligations not covered by the SBLC's specific wording

03 / 16

Documentary & Deferred Letters of Credit

Payment released once shipping documents are presented, with deferred terms letting the buyer settle at an agreed later date.

What's Covered

Sight LCs releasing payment on presentation of compliant documents
Deferred payment LCs for agreed later settlement
Document checking support to reduce discrepancies
Coordination with both buyer's and seller's banks

Full Details → Get a Quote

Who This Is For

Importers and exporters who want payment conditional on shipping documents, with or without a deferred settlement period for the buyer.

Good to Know

Discrepant documents are the single biggest cause of delayed LC payment. We help get the paperwork right before it's presented.

Usually Not Covered

Payment where presented documents are discrepant and not corrected in time
Goods or terms not matching the LC's exact wording
Delays caused by the applicant's own bank, outside the beneficiary's control

04 / 16

Red Clause Letters of Credit

Lets an exporter draw an advance before goods are shipped, helping fund production or purchase ahead of delivery.

What's Covered

Pre-shipment advance drawn against the LC
Structured recovery of the advance against final shipment
Used to fund production, harvesting, or procurement
Agreed alongside the buyer's standard LC terms

Full Details → Get a Quote

Who This Is For

Exporters who need working capital before goods are shipped, and buyers willing to support that with an advance clause.

Good to Know

Because it's an unsecured advance from the buyer's perspective, this clause depends on an established, trusted trading relationship.

Usually Not Covered

Advances beyond the agreed red clause limit
Failure to ship goods as required to justify the advance
Disputes over the underlying trade contract terms

05 / 16

Demand Guarantees

The issuing bank pays the beneficiary on first demand, without needing to prove the underlying contract was actually breached.

What's Covered

On-demand payment without proof of underlying default
Used across construction, trade, and supply contracts
Structured to match the specific obligation it secures
Issued via our banking relationships

Full Details → Get a Quote

Who This Is For

Beneficiaries who need certainty of payment on demand, and businesses whose counterparties require this stronger form of guarantee.

Good to Know

Because payment isn't conditional on proving fault, these carry more risk for the applicant. We make sure you understand that before issuing one.

Usually Not Covered

Demands made after the guarantee's expiry
Clearly fraudulent or abusive calls, where legally established as such
Obligations outside the guarantee's specific wording

06 / 16

Performance Bonds

Compensates a project owner if a contractor fails to complete work to the agreed standard, scope, or timeline.

What's Covered

Compensation if contracted work isn't completed as agreed
Typically a percentage of total contract value
Common on construction and large supply contracts
Released on satisfactory contract completion

Full Details → Get a Quote

Who This Is For

Contractors required to provide project owners with security against non-performance, and project owners requiring that security.

Good to Know

Bond value and wording usually need to match a specific clause in the underlying contract. Get that agreed before applying.

Usually Not Covered

Delays or shortfalls outside the contractor's control (e.g. force majeure, if excluded)
Amounts beyond the bond's stated percentage of contract value
Claims not notified within the bond's validity period

07 / 16

Bid Bonds

Security lodged during a tender process, protecting the project owner if a winning bidder withdraws or won't sign the contract.

What's Covered

Security lodged as part of a formal tender submission
Compensation if a winning bid is withdrawn or not honoured
Typically a fixed percentage of the tender value
Released once the contract is signed or the tender concludes

Full Details → Get a Quote

Who This Is For

Businesses bidding for tenders that require bid security as a condition of entry.

Good to Know

Bid bonds usually need to be in place before a submission deadline. Start this well ahead of the tender close date.

Usually Not Covered

Withdrawal for reasons permitted under the tender's own rules
Amounts beyond the bond's fixed percentage of tender value
Bonds lodged after the tender submission deadline

08 / 16

Proof of Funds Messages

A bank-verified message confirming a buyer has funds available to complete a transaction, giving sellers confidence before proceeding.

What's Covered

Bank-verified confirmation of available funds
Issued ahead of a proposed transaction, not as a payment itself
Used to demonstrate credibility before detailed negotiation
Coordinated with your bank's messaging procedures

Full Details → Get a Quote

Who This Is For

Buyers who need to demonstrate financial capacity before a seller will commit time to a transaction.

Good to Know

A POF message is evidence of funds, not a payment or a guarantee. It's usually a first step, not the final instrument in a deal.

Usually Not Covered

Use as a substitute for an actual payment or binding guarantee
Funds not genuinely available at the time the message is issued
Transactions unrelated to the one the message was issued for

09 / 16

Pre-Advice Messages (MT799)

A secure SWIFT message banks exchange to confirm intent to issue a financial instrument before the formal documentation follows.

What's Covered

SWIFT MT799 messaging between banks
Confirms intent to issue before full documentation is ready
Used to give counterparties early confidence in a deal
Followed by the full instrument once terms are finalised

Full Details → Get a Quote

Who This Is For

Parties who need early, bank-verified confirmation that an instrument is being arranged, ahead of the final paperwork.

Good to Know

An MT799 is a statement of intent, not a binding commitment. The actual instrument still needs to be issued afterward.

Usually Not Covered

Reliance on the message as a final, binding instrument
Terms not yet confirmed in the eventual formal documentation
Use outside the specific transaction it was issued for

10 / 16

Joint Venture Support

Risk and guarantee structuring for two or more businesses entering a joint venture, so liability and exposure are clearly divided.

What's Covered

Guarantee and instrument structuring across JV partners
Clear allocation of liability and exposure between parties
Coordination across each partner's own banking relationships
Support through the life of the venture, not just at setup

Full Details → Get a Quote

Who This Is For

Businesses entering a joint venture who want financial exposure and guarantees clearly divided between partners from the outset.

Good to Know

Getting this structure right at formation avoids disputes over liability later. It's much harder to unpick after the venture is underway.

Usually Not Covered

Liabilities not specifically allocated in the JV structuring
Disputes arising from matters outside the agreed guarantee structure
Changes to the venture not reflected in updated documentation

11 / 16

Import Finance

Short-term funding that bridges the gap between paying an overseas supplier and receiving payment from your own buyers.

What's Covered

Short-term funding to pay overseas suppliers
Structured against confirmed purchase orders or contracts
Bridges the gap until your own customers pay
Can be combined with an LC or bank guarantee

Full Details → Get a Quote

Who This Is For

Importers whose cash flow cycle doesn't line up with supplier payment terms and customer receipts.

Good to Know

This is working-capital finance, not insurance. We arrange it through our banking relationships alongside any related trade instrument.

Usually Not Covered

Funding beyond the confirmed purchase order or contract value
Use for purposes unrelated to the financed import transaction
Repayment terms not agreed before funds are drawn

12 / 16

Advance Payment Bonds

Guarantees that a down payment or advance is repaid if the contractor or supplier who received it fails to deliver.

What's Covered

Repayment of advances or deposits if the contract isn't performed
Reducing value as work progresses and the advance is earned
Bank-issued or insurance-backed (surety) options
Wording checked against the contract and buyer's requirements

Full Details → Get a Quote

Who This Is For

Contractors, manufacturers and suppliers asked to secure an upfront payment before a buyer will release it.

Good to Know

Ask for a reducing (amortising) bond. The guaranteed amount falls as the advance is worked off, which lowers your exposure and often the cost.

Usually Not Covered

Performance failures beyond the advance itself (that's a performance bond)
Disputes the bond wording doesn't refer to
Advances paid outside the agreed contract terms

13 / 16

Retention Bonds

Replaces cash retentions held back from your invoices with a bond, so the money comes to you instead of sitting with the employer.

What's Covered

Release of retention monies normally held until project completion
Cover through the defects or maintenance period
Bank or surety-issued bonds to suit the employer
Advice on standard wordings used in construction contracts

Full Details → Get a Quote

Who This Is For

Construction contractors and subcontractors who routinely have 3-5% of every payment withheld as retention.

Good to Know

On a large project, retentions can tie up a significant amount of working capital for years. A bond usually costs far less than the cash it frees up.

Usually Not Covered

Defects or claims beyond the bond amount
Contracts where the employer refuses bonds in place of cash
Retentions already released or offset

14 / 16

Maintenance & Warranty Bonds

Guarantees that defects found after handover will be put right during the agreed maintenance or warranty period.

What's Covered

Rectification of defects during the defects liability period
Equipment and installation warranty obligations
Bank or surety-issued options
Expiry dates and amounts matched to the contract

Full Details → Get a Quote

Who This Is For

Contractors, equipment suppliers and installers whose buyers want security that warranty promises will be honoured.

Good to Know

A maintenance bond often replaces the performance bond at handover, usually for a smaller amount, so plan the switch-over date in advance.

Usually Not Covered

Normal wear and tear or misuse by the buyer
Defects reported after the bond has expired
Consequential losses the contract doesn't cover

15 / 16

Payment Guarantees

A bank's guarantee that a buyer will pay a supplier for goods or services delivered on agreed terms.

What's Covered

Payment security for open-account or credit-term sales
Single-contract or revolving guarantees
Arranged for buyers wanting better supplier terms
Wording aligned with international rules (URDG 758) where needed

Full Details → Get a Quote

Who This Is For

Buyers who want suppliers to extend credit terms, and suppliers selling to new or overseas customers.

Good to Know

For buyers, a payment guarantee can unlock longer credit terms from suppliers who would otherwise insist on payment upfront.

Usually Not Covered

Disputes over quality or delivery not covered by the wording
Payments falling outside the guarantee's validity
Amounts above the guaranteed limit

16 / 16

Customs & Excise Bonds

Guarantees to customs and tax authorities that duties and taxes will be paid, for duty deferment, transit and bonded warehousing.

What's Covered

Duty deferment guarantees
Transit (T1) guarantees for goods moving under customs control
Bonded warehouse and excise guarantees
Bank or insurance-backed options to protect your credit lines

Full Details → Get a Quote

Who This Is For

Importers, freight forwarders, customs brokers and warehouse operators dealing with duties and excise on a regular basis.

Good to Know

Customs guarantees are often a licensing requirement. Arranging them through an insurer rather than a bank can preserve your borrowing capacity.

Usually Not Covered

Penalties for fraud or deliberate non-compliance
Duties on goods outside the guaranteed procedure
Amounts above the authorised guarantee level

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