What is a bank guarantee?

A bank guarantee is an independent commitment of the bank to pay to the guarantee beneficiary (eligible entity) the amount indicated in the guarantee (guarantee amount) if the guarantee issuer, upon whose instructions the guarantee was issued, failed to meet its obligation.

Payment to the guarantee beneficiary is made directly by the guarantor bank or via another bank, after the beneficiary has met specific payment conditions, which may be ascertained with defined documents in the guarantee agreement, such as, for instance, invoices or consignments.

It is an effective instrument increasing transaction security and mitigating the risk of counterparty default. When the guarantee comes into force, it becomes a binding instrument irrespective of the validity of the main legal relationship (e.g. trade contract) between the principal and the beneficiary.

Is bank guarantee perfect for your business?

If you are in trading or service business, operating in Poland and abroad, often establish new trade contacts and want to improve your credibility towards counterparties, then a bank guarantee is just the solution for you. The guarantee will be an essential instrument to support your business - issuing a guarantee, you will increase the credibility of your company. Being a beneficiary of a guarantee, you will minimise the risk of counterparty default.

About types of bank guarantees

Guarantees may be granted individually to secure one specific transaction or in the form of a line, within a specified limit.

The line for guarantees means one credit decision, one agreement, one collateral for several products. The line is renewable and is granted in PLN for a period of up to 12 months. It enables efficient securing and financing of your liabilities (current and future), improvement of your company's liquidity and credibility as well as cutting the time from your guarantee order to its issuance by the Bank.

Upon your instructions, Bank Millennium S.A. may also issue a guarantee promise, which constitutes a commitment of the Bank to grant a guarantee after you have met the conditions agreed with the Bank.

How to get a bank guarantee?

Contact your Credit Advisor who will provide you with detailed information about the offer and documents required by the Bank to check your creditworthiness. He will also help you prepare the instructions to issue the guarantee. We will assess your creditworthiness free of charge.

To calculate the amount of collateral of a guarantee, we shall require the following documents from you:

  • founding documents that indicate the legal status of the company,
  • documents indicating the authorities empowered to make statements regarding property rights and financial obligations,
  • confirmation of the business' REGON statistical number,
  • confirmation of the NIP number (Taxpayer Identification Number),
  • financial documents of the company.

We may also ask for other documents.

After having checked your credit capacity, the Advisor will contact you and present your personalised offer. Just sign a Guarantee Agreement and have the Bank Millennium SA assume the risk of default against the trade contract to secure the transaction.

For detailed information about the offer, call TeleMillennium 801 31 31 31 lub +48 22 598 41 61 (for foreign or mobile callers).