Introduction

A Quality Assurance Guarantee is issued to guarantee product performance during the warranty/maintenance period provided under an underlying contract.

Product Features

1. Mitigate mutual distrust of parties involved in contract.

2. Guarantee proper performance of the contract.

3. Reduce cash injection in a contract if cash deposit is otherwise required.

4. Improves liquidity and increase the contractor or supplier’s market competitiveness.

5. Commonly required in construction projects and contracts involving capital goods.

Application requirements

1. Maintain current account with our bank.

2. Companies must possess the proficiency in performance under the contract.

3. A credit facility or at least 100% cash margin or deposits must be provided (process must be pre-arranged with the bank).

4. The format of the bankers guarantee that is to be issued must be acceptable to the bank.

Application Procedures

1. Applicant submits the request with the documentary evidence showing the need for the Quality Assurance guarantee eg the commercial contract.

2. The bank evaluates customer and transaction information.

3. The bank reviews the request, the format of the guarantee and checks the security documentation.

4. The bank guarantee is issued.