Bank Guarantee

Bank Guarantee Finance.

A bank guarantee gives a counterparty comfort that a business will meet its contractual obligations, structured as a non-fund-based limit against the business's own credit and security.

Performance Guarantees  ·  Bid Bonds  ·  Financial Guarantees

Where This Applies

  • A contract or tender requires a performance or bid bond guarantee.
  • A counterparty needs assurance of financial commitment without the business tying up cash upfront.
  • Existing non-fund-based limits need to be assessed for available guarantee capacity.
  • Guarantee tenor and value need to match the underlying contract requirement.

How We Approach It

We review whether the requirement is performance, financial or bid-bond in nature, then structure the guarantee limit against existing non-fund-based capacity and security, sized to the contract value involved.

Why EquiFin

  • Independent advisory — we structure and negotiate, we do not lend ourselves.
  • 60+ active lender relationships across PSU banks, private banks, NBFCs and private credit funds.
  • One point of contact from structuring through to disbursement.

Frequently Asked Questions

What is a bank guarantee?

A bank guarantee is a non-fund-based facility where a bank assures a counterparty that a business will meet its contractual obligations, without the business tying up cash upfront.

What types of bank guarantees are common?

Performance guarantees, bid bond guarantees and financial guarantees are the most common types, each suited to a different stage of a contract or tender.

See what documents lenders typically ask for — Documents Required for a Corporate Loan →

60+ Active Lender Relationships  ·  Independent Advisory, Not a Lender

Give Counterparties Comfort Without Tying Up Cash.

We structure the guarantee against existing limits and security.

Discuss a Bank Guarantee Requirement