Letters of guarantee enable you to enhance the credit rating of your business to undertake projects in Greece and abroad. Moreover, you can negotiate better terms with your suppliers and participate in tenders.
How it works
A letter of guarantee is a credit product issued by Eurobank at the applicant’s request in favour of a third-party (beneficiary). If the party on whose behalf Eurobank issues the guarantee fails to fulfil their obligations towards the beneficiary of the letter of guarantee, Eurobank undertakes to pay the beneficiary up to the guaranteed amount.
Categories of letters of guarantee
The main categories of letters of guarantee, depending on their contents are:
- Bid bond (Category A / low risk).
- Performance bond (Category B).
- Retention money guarantee (Category C).
- Advance payment guarantee (Category C).
- Payment guarantee (Category C).
Validity period
Letters of guarantee with a fixed term are issued for specific purposes, e.g. participation in tenders.
Collaterals
Letters of guarantee are issued with or without collateral in the context of a credit line, in accordance with the existing credit policy.
Additional benefits
- Simple and direct issuance process.
- Competitive and customised pricing.