Advisory on establishing Financial and Performance Bank Guarantee limits to support tender participation, contractual compliance, and mobilization advances.
Guarantee Categories
Financial, Performance, Bid-Bond
Margin Norms
10% - 25% Cash / Collateral
Tender Support
Government & PSU Compliant
Issuance Speed
Same-Day / 48-Hour Issuance
Structured Bank Guarantees for Contractors & Corporates
A Bank Guarantee (BG) is an undertaking by an issuing financial institution ensuring that the liabilities of a debtor will be met in the event of a contractual default.
Types of Guarantees We Structure:
Performance Guarantees: Guaranteeing satisfactory execution of civil, electrical, mechanical, or service contracts.
Financial Guarantees: Backing financial payment commitments and statutory obligations.
Bid Bond / EMD BG: Submitted during government and institutional tendering processes.
A Financial Bank Guarantee ensures repayment of financial debts or advance payments if the client fails to meet monetary liabilities. A Performance Bank Guarantee protects the beneficiary against financial losses if the contractor fails to deliver or execute the contracted scope of work.
Banks typically require a cash margin (usually in the form of a Fixed Deposit ranging from 10% to 25% or higher depending on credit rating) alongside collateral security and a primary sanction agreement.