Bank Guarantee (BG)

Bank Guarantee (BG) is a product provided by Commonwealth Bank on behalf of Customer, in form of financial compensation guarantee to a third party, in case of the guaranteed Customer could not fulfill its obligation (default).

Product Features

Features Descriptions
Bank Types of Guarantee
  • Bid Bond,to ensure the commitment of bidders during the tender period.
  • Performance Bond, to ensure undertaking of work or payment.
  • Retention Bond, to ensure the maintenance of the project which has been completed.
  • Custom Bond, to guarantee the payment of customs duties.
  • BG Currencies IDR, USD, AUD, SGD, EUR, GBP, HKD, JPY, NZD, CNY

    Benefits

    Benefits Descriptions
    Opening Opportunities Opening business opportunities that previously were difficult due to lack of trust between the transacting parties.
    Enhancing Corporate Image In general Bank Guarantee is only granted to reputable company with good track record.
    Broadly acceptable As part of the Commonwealth Bank Australia Group, the largest integrated financial service provider in Australia, our Bank Guarantee is acceptable by your partners worldwide.

    Bank Guarantee Issuance Process

    Related with the project or transaction between Customer and third party, Customer may request Commonwealth Bank to issue Bank Guarantee to the third party. Bank Guarantee issuance can be performed by using the facility provided by Commonwealth Bank or by customer collateral, either fixed asset or cash collateral.

    Bank Guarantee Transaction Flow

    Fees

    Fees related Bank Guarantee issuance can be found here

    Risks

    Inaccurate preparation of the terms and conditions to claim Bank Guarantee may cause disanvantage to the transacting parties. In this case Commonwealth can help you to consult the required terms and conditions of Bank Guarantee.

    Further Information

    Call CommBank can be accessed through 1500030 or (6221) 2935 2935 for international access. We serve customer 24 hours a day 7 days a week (including public holiday).