Do business more securely with our support: Guarantees and letters of credit

Contracting jobs with the issuance of guarantees or letters of credit allows you to plan your cash flow more efficiently and provides additional security in the collection and payment of completed jobs.

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In case you are not sure that payment will be made as agreed, or you are making tenders or entering into advance payment agreements, consider one of our trade finance products.

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Our team with long-standing experience in trade finance provides professional support and extensive know-how for all your needs.

International banking group

As a member of the Raiffeisen Bank International Group, we cooperate with a wide network of correspondent banks.

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Guarantees

Guarantee (L/G) is the most frequently used security instrument issued by a bank at the request of a client (ordering party/applicant), by which a bank guarantees to a third party (beneficiary) that the guaranteed amount will be paid should the client fail to fulfil its obligations under underlying relationship on which the guarantee is based.

We issue guarantees for regular business activities in Croatia and abroad, as well as special guarantees adjusted to your specific needs.

Most frequent types of guarantees:

tender guarantee (bid security)
performance guarantee
warranty guarantee
advance payment guarantee
payment guarantee
loan repayment (credit line) guarantee
customs guarantees

Letters of credit

A letter of credit (L/C) is a payment obligation made by the buyer's bank to the seller guaranteeing that payment will be effected after the seller has presented the documents required by the terms of L/C which are fully in compliance with L/C terms and conditions stated in the text of L/C.

Upon seller's request and buyer's bank authorization, the seller's bank may additionally guarantee payment to the seller. This is called confirmation of L/C.

Letters of credit are recognized worldwide and frequently used in international trade where they are governed by the Uniform Customs and Practice for Documentary Credits (currently UCP 600), the rules of the International Chamber of Commerce (ICC).