Types of Guarantees
Right for you if you want
What you need to apply
Service and Assistance
An LOI is the precursor to a Guarantee or Bond and is usually requested in the early stages of bidding. Once a bid has been won, the Bank Guarantee must be issued.
Purposes: Long lease property acquisition – construction or other bidding.
Bank guarantees can be in various formats usually defined by your counter party, and can bear different titles depending on the purpose.
To guarantee payment to the Tax Authorities or in case of other litigation, to avoid or lift embargoes in connection with tax and legal claims, also to obtain long lease land, to guarantee a minimum usage of power to a utility company, etc.
To guarantee compliance with a construction contract
Bid Bonds or Tender Guarantees
To guarantee seriousness and compliance with obligations in connection with large construction projects or large product or service delivery contracts
Once a letter of intent to provide any of the above types of guarantees or a bank guarantee has been directly issued, the bank has committed itself to pay out in case of a claim from the beneficiary. As such it is considered a credit instrument and the same requirements apply as with loans and overdraft facilities.
Your Account Manager will explain what documents to submit in your specific case.
Please see below a checklist of the most common documents:
*depending on which is applicable in your specific case.
Account and service information are just a phone call away.
During business hours (8:00am to 4:30pm AST):
Aruba Bank Contact Center: (+297) 527-7777
For questions regarding the product features and to apply, please call:
Aruba Bank Corporate Account Manager: (+297) 527-7774