K&H bank guarantee

we offer a wide range of bank guarantees

  • to secure payment or delivery obligations
  • towards authorities or business partners, and even to tenders
K&H bank guarantee

details

A bank guarantee is an irrevocable commitment by the Bank to make a payment, as ordered by the client, to the beneficiary named in the bank guarantee upon the beneficiary’s first notice, provided that the preconditions set forth in the bank guarantee have been met, without considering the underlying legal relationship. 

guarantee fee, increase of guarantee amount, prolongation

as agreed on an individual basis

fees and commissions related to the issuance of bank guarantees

the fees and commissions related to documentary transactions are published in our Announcement for Corporate Clients  

currency of the bank guarantee

forint and any foreign currency for which K&H Bank quotes an exchange rate

main types of bank guarantees

  • payment guarantee
  • bid bond
  • advance (re)payment guarantee
  • performance bond
  • warranty bond
  • product liability bond
  • rental guarantee
  • customs duty and excise bond

Under certain conditions the K&H Bank may ask for the involvement of a free-of-charge COSME Portfolio Guarantee in addition to strengthen the collateral security. COSME guarantees are issued by the COSME (Competitiveness of Enterprises and Small and Medium-sized Enterprises) Programme and the European Fund for Strategic Investments (EFSI) in the framework of the European Investment Plan. EFSI’s mission is to facilitate the financing and implementation of strategic investments in the European Union and to prevent disruptions in financing.

For more information about the COSME Portfolio Guarantee Facility, visit:

who might be interested?

•    those who applied for subsidies or tenders
•    those required to provide a guarantee for an activity subject to a licence or permission 
•    those who wish to bolster the trust of their business partners 

tailored to your needs

•    you do not need to tie up your business’s funds as security related to foreign trade, excise, etc. deals 
•    your bargaining position and business image are improved by the Bank’s irrevocable commitment

contract terms and conditions, announcements

general tems and conditions
general contractual terms and conditions of active corporate banking services
announcement for corporate clients
This material does not constitute an offer. The Bank reserves the right to modify the terms and conditions. A detailed description of the product and its terms and conditions can be found in the relevant Contract, the General Contractual Terms and Conditions for Active Corporate Banking Services (credit, loan, bank guarantee, letter of credit, bills of exchange, lease financing deals), in K&H Bank’s General Terms and Conditions, and the Announcement for Corporate Clients. K&H Bank will decide on the bank guarantee facility amounts and the availability thereof as well as on the collateral required at its sole discretion, in accordance with its own policies.