Guarantee/Standby DC is an irrevocable undertaking in writing, issued by the Bank on behalf of the applicant in favor of the beneficiary, to pay on the presentation of a complying demand in accordance with the terms of the guarantee/standby DC. Guarantees and Standby DCs are used by beneficiaries to mitigate the non-performance or non-payment risk of the applicant.
Conduct business with confidence, even where you lack established relationships, through the use of guarantees and standby letters of credit. An HSBC Bank Armenia guarantee could enable you to negotiate favorable terms with buyers and suppliers by protecting them from non-performance under a contract while addressing your financing needs. HSBC Bank Armenia offers tailored solutions including performance, advance payment, tender, warranty, financial guarantees and standby letters of credit as well as others upon request.
A common type of guarantee issued to support various kinds of financial obligations of the applicant. Provides financial security to the beneficiary should the applicant fail to make payment for the goods or services supplied.
Often called for in support of contract terms. Provides the beneficiary with a financial remedy if the applicant fails to fulfill contract conditions.
In markets where your suppliers and buyers are less comfortable with guarantees, HSBC Bank Armenia can support your business via both financial and non-financial standby letters of credit.
Counter guarantees & SDCs are issued in favor of a third bank to support re-issuance of a Bank guarantee. They are very common for international transactions and best managed via HSBC network globally.
Confirmation for SDC received by the Bank in favour of the beneficiary, considering the risks of SDC issuing bank and country.
Bank guarantees and standby documentary credits are handled in accordance with the rules published by the International Chamber of Commerce (ICC).
Last updated on: 22/11/19 12:41 UTC
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