Laiteyksityiskohta

Guarantees for import trade

Bank guarantee is a convenient way to handle your company's needs for collateral security

A bank guarantee is a commitment issued by the bank on your company's behalf in favour of your domestic or foreign contractual partner, under which the bank as guarantor is committed to monetary compensation for the fulfilment of your company's contractual obligation within the stipulations specified in the guarantee commitment.

Your company can use bank guarantees as collateral in various contractual relationships relating to the fulfilment of the parties' contractual obligations.

An international bank guarantee means a guarantee issued in favour of a foreign beneficiary. In the case of a bank guarantee in foreign trade, the beneficiary is your company's foreign contractual partner.

A bank guarantee abroad can be issued as absolute guarantee or first demand guarantee. The first demand guarantee is widely used in international trade.

Fill in the form to apply for a guarantee:

Guarantee application

Sign in to the online service. Requires an effective agreement and online user identifiers. If you are not an OP customer, please contact the customer service.

Absolute guarantee

The guarantor bank has the right refuse payment to the beneficiary until your company's payment obligation has been determined on the basis of the contractual relationship.

First demand guarantee

The guarantor bank undertakes to pay the beneficiary on the grounds of the claim presented by the beneficiary according to the terms of the guarantee obligation without the guarantor examining whether the beneficiary has the right to receive the payment on the basis of the contract of sale. These are called first demand guarantees.

Indirect guarantee

In some countries, beneficiaries do not accept a foreign bank's guarantee or it is not in accordance with the laws/ commercial practice of the country concerned. In such a case, the guarantee is issued through our local correspondent bank as an indirect guarantee. We request our correspondent bank to issue a guarantee to your company's contracting partner. At the same time, we issue a counter-guarantee to our correspondent bank. Such a counter guarantee to our correspondent bank is always first demand guarantee.

The customer usually pays not only its own costs but also the guarantee charges incurred by the correspondent bank.

Other guarantee for imports

One of the most common guarantees for imports is a guarantee in security for payment of the purchase price. When a foreign seller grants a post-delivery payment time to a Finnish importer, the related guarantee will usually come in the form of either a separate guarantee for a single transaction or a credit limit type payment guarantee.

Customs guarantee is needed, for example, in case an importer files an application for temporary exemption from customs duty with the customs authorities. Guarantee given for the Community transit procedure to Finnish Customs is comparable to customs guarantee, but it covers customs duties and other such charges within the EU payable by the guaranteed party.

In addition to the guarantees mentioned above, it is possible to give guarantees in security for the fulfilment of various contractual obligations (e.g. exclusive sales, lease and rental agreement) as well as collateral securities to relevant authorities required by laws or official regulations.

Bank Guarantee Online Service on Corporate eServices provides your company with state-of-the-art solutions for applying for and managing bank guarantees and for real-time information on your company's guarantee portfolio.

Your company can apply for bank guarantees easily, efficiently and securely. If needed, you can also attach electronic documents to your application. Through this online service, an application register is available to your company to monitor and manage guarantee applications. If needed, it is also possible to include an acceptance function of guarantee applications and guarantee commitment text in our online service, supporting your company's internal guarantee process.

The online service helps your company to be up to date at all times. On the service, we maintain a guarantee ledger needed by your company and an electronic archive for guarantee commitment texts.