Bank Guarantee
Operating a business of your own can often present lucrative opportunities for expansion. Whether it’s moving to more spacious premises, investing in state-of-the-art equipment, or taking on more substantial contracts, these decisions can significantly impact your company’s growth trajectory. However, they can also place a considerable strain on your financial resources.
That’s where our bank guarantees and bonds come in. Specifically designed to alleviate the pressure on your cash flow, they provide the financial backing needed to pursue your business’s next big step. With these instruments in place, you can confidently navigate through these growth phases, secure in the knowledge that your financial foundation remains strong, and your business can continue to thrive.
Bank One proposes you various types of guarantees depending of your needs:
Tender Bond
This guarantee is required in connection with public tenders.If a company participate in such a tender it must submit a bid bond together with its offer to secure payment:
•In the event that the tender is withdrawn before expiry date
•If the contract is not accepted by the company once the company’s bid has been chosen.
•If the company does not submit a performance bond if the company bid has been accepted.
Performance Bonds
With a performance bond the Bank at the customer’s request (usually a contractor) undertakes to pay the beneficiary the guarantee amount in the event the contractor has not met or insufficiently fulfilled his contractual obligations. Normally it is 10% of the contract amount.
Advance payment guarantee
Advance payment guarantee are issued by the Bank on behalf of it’s customers to ensure that the customer will repay the advances made by the beneficiary in the event of non-performance of the contractual obligation
Customs guarantee
This guarantee is issued in favor of Mauritius Revenue Authority to secure payment of customs duties in case customers fails to pay duties on goods imported
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