Bank Mandiri provides Bank Guarantee as an undertaking at the request of its principal, in favor of your counter party (Beneficiary). With our services, your counter party, as Beneficiary, will receive a specific amount of money, in case of non-performance or default.
Therefore, Bank Guarantee in one hand can increase your company’s image, and on the other hand can minimize Beneficiary’s loss due to default.
The Issuance of Bank Guarantee
Bank Guarantee can be issued by using the facility that we provide, or for faster way, by using your own fund as Deposit. As the biggest bank in Indonesia, our Bank Guarantee will be well accepted by your counter party.
- Improve your company image
- Facilitate business transactions due to lack of trusts among the parties.
- Can be used for domestic as well as international transactions.
Types of Bank Guarantee
There are several kinds of Bank Guarantees, to suit your needs:
Bank Guarantee to support tenders for contracts. It helps the project owner, as Beneficiary, to mitigate risks if the bid participant, as Applicant, walk out during the tender period or not willing to sign the contract after awarded a bid.
Included in this group are:
- Maintenance Bond/Retention Bond Type of performance bond that protects the project owner after a job or project is finished. It guarantees that the contractor will carry out all necessary work to correct structural and/or other defects discovered immediately after completion of the contract, even if full payment has been made to the contractor.
- Performance Guarantee is a Bank Guarantee to ensure that the service provider as Applicant will perform its obligation to Beneficiary, as specified in the contract. The valuePerformance Guarantee is a Bank Guarantee and time of this Guarantee can be structured for the total value of the project or according to progress of the work.
- Bank Guarantee Payment is a Bank Guarantee to ensure that the project owner/agent/dealer/distributor as Applicant will make the payment on time and in full, upon contract completion or as agreed term, to executor/work acceptor/producer/trader as Beneficiary.
Bank Guarantee to ensure that the guaranteed party as Applicant will pay his/her import duties/other tax duties to the government agency when due.
Credit Payment Guarantee
Bank Guarantee to ensure that the debtor as Applicant will honor his/her obligation to pay a certain amount of money in connection with the loan/credit received by Applicant from the Creditor (bank) as Beneficiary.
Advance Payment Bond
Bank Guarantee to ensure:
- That the project executor as Applicant will conduct his/her work/obligation after receiving advance payment for the work from project owner as Beneficiary, or
- That the debtor as Applicant will honor his/her obligation to pay a certain amount of money in connection with credit agreement or certain debt instruments, or the obligation to settle the credit/loan to the credit provider as Beneficiary.