Asb Bank Limited

What is an ASB Bank Guarantee?

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An ASB Bank Guarantee is a written promise from ASB Bank to pay a certain amount of money to a beneficiary if the principal debtor fails to meet their obligations under a contract.

Bank guarantees are commonly used in international trade to protect the buyer against the risk of the seller failing to deliver the goods or services as agreed.

What are the different types of ASB Bank Guarantees?

There are a number of different types of ASB Bank Guarantees, including:

  • Performance guarantee: This type of guarantee is used to ensure that the seller will meet their obligations under a contract. For example, a performance guarantee may be used to ensure that a construction company will complete a project on time and to budget.
  • Advance payment guarantee: This type of guarantee is used to protect the buyer against the risk of the seller failing to deliver the goods or services after receiving an advance payment.
  • Retention money guarantee: This type of guarantee is used to ensure that the seller will return any retention money that is held by the buyer after the contract has been completed.

Who can apply for an ASB Bank Guarantee?

Any business or individual can apply for an ASB Bank Guarantee. However, the bank will assess the creditworthiness of the applicant and the risk of the transaction before issuing a guarantee.

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How to apply for an ASB Bank Guarantee

To apply for an ASB Bank Guarantee, you will need to contact your local ASB branch. The bank will provide you with an application form and will require you to provide supporting documentation, such as a copy of the contract that the guarantee is for and a financial statement of your business.

Conclusion

An ASB Bank Guarantee is a valuable tool that can be used by businesses and individuals to reduce risk and improve their negotiating position.

If you are considering using an ASB Bank Guarantee, you should contact your local ASB branch to discuss your specific needs.

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