Bonds, Guarantees & Standby Letters of Credit

The terms of your contract will determine whether you need a guarantee or a standby letter of credit. Read the below to ensure you know which product is best for your business

Bonds & Guarantees

• Provides a purchaser the security of a guarantee if there is a failure by the seller to meet its contractual obligation.

Standby Letters of Credit

• To pay a beneficiary based either on their written demand certifying non-fulfilment of contracted terms or against stipulated documents.
• Operates similar to a Bank financial guarantee, with the main difference being that it is governed by the current version of UCP or ISP98

There are a wide range of different Bonds and Guarantees that can be issued depending on a customer’s specific requirements. They can be either performance related, to cover failure to perform under a contractual obligation, or they can support a financial obligation. 

Alternatively you can always talk to your relationship manager. If you’re a new customer with an annual turnover of less than £2 million, you can give us a call on 0345 050 1422. If it’s over £2 million, call us on 0345 050 1423.

Customers with hearing and speech impairments can contact us by using our Relay UK Service: 18001 0345 050 1422 if your annual turnover is less than £2 million or 18001 0345 050 1423 if your annual turnover is more than £2 million.

For more information on accessibility visit: https://www.business.rbs.co.uk/business/accessibility.html

Calls may be recorded for training and monitoring purposes.

To see how much your call might cost, visit the call charge information page.