Guarantee For Contractors
The services provided by Maruti Associates can help you structure your transactions that are tailored to the specifics of each deal without collaterals.
A Bank Guarantee is a promise from a bank that the liabilities of a debtor will be met in the event that you fail to fulfill your contractual obligations. In an increasingly challenging business environment, a Bank Guarantee is an effective way of securing performance and payment. A company is often required to submit a Bank Guarantee while entering into a large-scale business transaction or carrying out a high-value project or receiving advance payment for working on a project. Some of the variants of Bank Guarantees offered by our institutions without collateral with AAA rated Banks include.
A performance guarantee is an enforceable commitment by a corporate entity to supply the necessary resources to a prospective contractor and to assume all contractual obligations of the prospective contractor.
A financial guarantee is an agreement that guarantees a debt will be repaid to a lender by another party if the borrower defaults. Essentially, a third party acting as a guarantor promises to assume responsibility for a debt should the borrower be unable to keep up on its payments to the creditor.
A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to provide guarantee that the winning bidder will undertake the contract under the terms at which they bid.
An advanced payment guarantee, also known as a cash guarantee, is used when a commercial contract is issued to guarantee that payment gets made to the company that is doing the work.
Deferred payment guarantees are used when one party in a transaction undertakes to make payment of a fixed amount at corresponding times in the future. In case, the debtor is unable to pay, then the deferred payment guarantee can be invoked to claim the money.
