Bank Guarantee

Types of Bank Guarantees in Dubai

There are different kinds of bank guarantees in UAE that include –

• Payment Guarantee – This kind of bank guarantee in UAEmakes sure that payment is made in a timely manner for the provided commodities or for the services rendered.
• Tender Guarantee – This kind ensures fulfillment of payment needs if the successful tenderer refuses cooperation such as cancellation of application, non-signing agreement, and more.
• Tax and Customs Guarantees – This kind of guarantee make sure the performance of obligations to the customs and tax officials in the United Arab Emirates.
• Advance Payment Guarantee – This kind of guarantee makes a sure refund of the advance payment if the terms and conditions of the transactions are not met with respect to time and volume.
• Performance Guarantee – This kind of guarantee provides a guarantee for the delivery of all kinds of services, works, and commodities that are performed completely and timely.
• Conditional and Unconditional Guarantee – Bank guarantees can be classified into conditional and non-conditional guarantees, subject to the terms of monetary payments. A conditional guarantee can be termed as a payment done on the beneficiary’s written request availability of documents confirming the completion of responsibilities by the principal. In the case of a non-conditional guarantee, access to a beneficiary’s written request is sufficient to pay the amount.
• Secured and Unsecured Guarantee – In addition, bank guarantees can also be secured and unsecured. The guarantee is unsecured, in case of written commitment. A bank guarantee is considered secured if there is some other method of making sure it is like mortgaging an asset.

The guarantee may be issued by the Bank of UAE or by any other bank. In the first matter, it’s a direct process for bank guarantee, and in the second matter, it is a counter-guarantee.

According to the conditions of monetary payment, the bank guarantee may be conditional or non-conditional. in the situation of a conditional guarantee that payment is done, the beneficiary’s written request, and the availability of the confirming of a document of the fulfillment of the obligation by the head. In case a bank guarantee is unconditional in the United Arab Emirates, the beneficiary’s written request availability is sufficient to fill the payment.

In addition, the bank guarantees may be unsafe and secure. In case there is another way to ensure this, for instance, a promise of assets, a bank guarantee will be considered safe.

Bank Guarantee Providers in Dubai for Business Setup

A bank guarantee is provided to an individual or a company regardless of the capacity of the unit. Hence, a nominal understanding or fee is collected among the parties included. A bank guarantee is required in the UAE to invest in certain business activities or to have working capital. Being the bank guarantee provider in Dubai, Task Master assists companies with a short-duration bank guarantee feature which has the validity of three to ten days.

There are two major parties included in the procedure of bank guarantee – The beneficiary and the original borrower for the bank. Task Master helps you by making you a beneficiary and a prime debtor. Through this, Task Master increases the creditworthiness of your company to secure a bank guarantee.

Documents Required for Bank Guarantee

• Valid passport or national ID with UAE residence visa and Emirates ID of all signing authorities and shareholders. If applicable
• Valid legal documents such as trade license, free zone certificate of incorporation, certificate of commercial registration, partnership agreement, etc.
• Power of attorney, if applicable
• Address proof
• Information of ultimate beneficial owner
• Company profile and bank reference, if applicable
• Audited financial statements

These are the required document that is necessary for a bank guarantee. The bank guarantee providers in Dubai will help you in the documentation.

How we can help you

We act as bank guarantee providers in Dubai. After the process of submitting their bank guarantee request, the merchant contacted us. Because the customers wanted to consult with us in complete detail; our business finance system arranged an apparent meeting with clients. The merchant cleared all explanations of their needs to us. We understand their project and also give details of the whole process to receive a bank guarantee on the client’s behalf. When the merchant feels convinced with the process, we start the process with the next phase. In addition, we provide the agreement of services to be signed by the merchant; also ask to pay the service amount. Then a customer signed the contract and made payment of the service fee.

Our professionals structured their project and we sent the bank guarantee format to understand their thought. The same day, the customer gave approval to the bank guarantee draft; issuance fees were paid. When cleared the invoices and received all documents;, we gave instructions to our bank to swift a letter of bank guarantee to the bank of the seller.