Bank Guarantees enable our Corporate Clients to receive trade credit, advance delivery of commodity/raw materials products; participate in tenders and commence advance production work.
A Bank Guarantee is a cost efficient instrument with a material interest cost advantage over bank loans. Using a Bank Guarantee for certain projects is more efficient than using a bank loan, as it improves the Corporate Client’s capital resource management and funding costs.
Our Corporate Clients who require frequent use of Bank Guarantees are invited to set up a Bank Guarantee line that will enable the Client to receive a Bank Guarantee within 1-2 days.
SDM-Bank is pleased to offer the following Bank Guarantees:
- Tender guarantees
- Advance payment Guarantees
- Performance Bonds
- Customs Guarantees
- Tax Guarantees
In case SDM-Bank is required to satisfy our Client’s Bank Guarantee obligations to our Client’s counterparties, the Client must compensate SDM-Bank for incurred costs.
ACCEPTABLE COLLATERAL FOR BANK GUARANTEES:
- Promissory notes, deposits in SDM-BANK;
- Real estate (industrial, warehouse, office, retail, land);
- Equipment, vehicles;
- Merchandise in stock, finished products, raw materials;
- Residential real estate.
SDM-Bank-approved credit collateral should carry appropriate insurance policies acceptable to the Bank. Corporate or Individual Surety may also serve as acceptable collateral.