International Business Guarantees

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When you’re trading internationally with or without established relationships, our guarantees reduce trade risks by giving you and your supplier greater security.

At a glance

  • A wide range of guarantees to cover many kinds of risk
  • Backed by a global network of group offices and correspondent banks, enabling us to provide you with attractive terms on foreign guarantees
  • Transaction information can be emailed via our Instant@dvice service

Key benefits

Reassure your international supplier and reduce your trade risk

Use it to guarantee payment in case of default or non performance

Specialist support from our Guarantees Team

International Guarantees explained

A guarantee, or 'bond' as it's sometimes known, provides your supplier (the beneficiary) with acceptable security if you (the applicant) fail to fulfil your obligations in the underlying contract.

We can arrange many different types of guarantees to cover different risk scenarios. Below we have listed some of those we arrange most frequently. To find out which is most suitable for your business, call our specialist Guarantees Team.

Performance Bond

This is the most common type of guarantee.

It's usually taken out for the entire length of a contract, plus a grace period to allow your customer to make a demand if you don't satisfy the obligations covered by the guarantee.

Tender Guarantee/Bid Bond

This is used where you require a sum of money from your customer at an early stage of the contract.

It gives your customer a financial solution if you don't fulfill any of the tender conditions.

Advance Payment Guarantee

This is used where you require a sum of money at an early stage of the contract.

Your customer can recover all or part of the amount paid in advance if you don't fulfil your underlying contractual obligations.

VAT Bond/Duty Deferment Bond

This is a guarantee for HM Revenue & Customs (HMRC). It enables you to import goods without immediately having to pay customs duty or tax.

You can request HMRC approval for a guarantee waiver when you apply for a Duty Deferment Account. If you do not get authorisation, you can still apply providing a guarantee.

Facility Guarantee

This enables you to secure banking facilities for a subsidiary, associate company or personal account in other countries.

Important information

HMRC Customs Guarantees

Further information relating to VAT Bond/Duty Deferment Bond

Speak to our specialist Guarantees Team

For new enquiries

Existing Customers

Call us on

0345 600 1522

Lines are open from 9am to 5pm Monday to Friday, excluding public holidays

Help and support

Ways to Bank

Get information about the range of tools and resources available to our trade finance customers, including HSBCnet and our Instant@dvice service


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