Bank guarantees can help importers to cover the risk of default by their European supplier, in their obligation to provide services or payment to you.
With the bank guarantee, the importer’s bank irrevocably commits, on first request, to pay in the event of default by the third party it is guaranteeing. Its commitment is separate from the commercial or service contract.
Bank guarantees can take various forms in order to meet different needs:
- Advance payment guarantee.
To be as efficient as possible, the bank guarantee must be simple and comprehensible in its formulation, and activated by conditions for which it is easy to provide proof and which comply with the commercial or service contract, be of a validity that is consistent with the commercial or service contract, and above all bear the signature of a first-rate bank.
In this context, Attijariwafa bank Europe operates in Europe to issue international counter-guarantees by SWIFT in favour of importer banks, on behalf of exporters.