Bank Guarantee

This is a surety bond filled by contractors, guaranteeing that in the event a bid is accepted, the successful contractor will sign the contract and furnish a performance bond.

The types of guarantees we offer;

Performance bond

Acts as surety to guarantee the satisfactory completion of a project by a contractor. The contractor is guaranteed compensation for any monetary loss up to the amount of the performance bond if the agreed terms are breached. Hence BK stands a guarantor on behalf of the client.

Features

• - Processing period takes 1 day

• - Commission is charged two ways; If issued as credit, 3.5% in a year, Provision, 2% in a year

• - Payment period is from 3 months to a year

Requirements

• - Notification letter from beneficiary

• - Format if there is any

• - Letter of request

Advance payment

This guarantee is appropriate when a contractor makes an advance payment to the seller. BK stands as the guarantor to the client. We secure any claims by the buyer on the seller for the reimbursement of the buyers advance payment on the contract price before delivery of the consignment in case the seller has failed to meet his/her contractual obligations.

Features

• - Processing period takes 3 days

• - Commission is charged two ways; If issued as credit, 3.5% in a year, Provision, 2% in a year

• - Payment period is from 1 month to a year

Requirements

• - Copy of contract

• - Bank guarantee

• - Security (house or cash collateral)

• - Format if there is any

• - Letter of request

Bid Bond Security

This security is given by the Bank when one is competing for a tender

Features

• - Processing period takes 2 days

• - Commission is charged two ways; If issued as credit, 3.5% in a year, Provision, 2% in a year

• - Payment period is from 3 months to a year

Requirements

• - Title of tender

• - Letter of request

• - References of the tender

FAQ’s

1.    Who is legible to a Bank guarantee?

Business people and companies that are able to provide all the necessary documents upon request

2.    If I require an extension on the Bank guarantee requested for, would it be possible?

Yes, we are able to extend the period as long as you provide us with a date that you would be able to clear the loan.

3.    Can a bank guarantee be renewed?

Yes, we are able to renew the period but only for people dealing in construction.