A Bank Guarantee is a written undertaking in which the bank agrees to make stipulated payments on your behalf should you fail to fulfil or carry out specified terms of a contract.
- It enables you to bid for contracts that call for guarantees and to buy a fixed property where a guarantee is usually a prerequisite.
- You may avoid paying in advance or lodging cash cover to secure a purchase or contract if cash cover is lodged with the bank under a pledge, you will be paid interest on the investment.
- Guarantees may continue for a specified period. Wherever possible a definite or determined expiry date or a clause, specifying a period of notice or withdrawal, is included in the guarantee.
- The party in whose favor the guarantee is issued is entitled to specify the wording of the document and must be acceptable to the bank. At your request, we will draft the wording of the document.
Individuals with a registered business registered in Namibia.
Individuals who plan to start a business.
Registered business who was awarded contracts with a reputable Institution.
Copy of purchase contract if applicable.
Copy of performance contract if applicable.
Copy of tender if applicable.
Request to issue Guarantee by Bank.
Financial statement or management accounts.
Cash flow forecast for the term of the facility.
Profit and loss projection for the term of the facility.
Rates and fees: The charges imposed by the bank are risk related and include an establishment fee, a postage fee and risk-related charge payable half yearly in until the guarantee is cancelled.
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