A bank guarantee is an unconditional and irrevocable undertaking issued by a bank to a beneficiary to pay an amount of money if requested to do so by the beneficiary. A bank guarantee is provided by the bank on behalf of the issuing party who has generally deposited an amount of money equivalent to the bank guarantee with the bank.

Bank guarantees are used in a wide range of different circumstances but are commonly used to secure:

• commercial leases;
• commercial property transactions;
• contractual performance in the construction industry including defect or maintenance periods; and
• the purchase of large scale mining equipment.

Bank guarantees are a form of ‘security’ and provide the beneficiary with confidence that the issuer is capable of fulfilling its obligations and is an indicator of the issuer’s financial stability. From the issuer’s perspective, a bank guarantee demonstrates its willingness to perform its obligations whilst at the same time retaining its cash.

Yes, all guarantees through Assuro are 100% cash secured (min. value: $15,000). This means that if you need a $100,000 bank guarantee you will need to deposit $100,000. The security is deposited directly with and held by the bank. Under the FCS, deposits up to $250,000 are protected by the Australian Government’s guarantee on deposits.

‍Don't want to tie down the cash?

‍Assuro can connect you with a specialist, business to business lender who may be able to finance your next bank guarantee. For more information on Bank Guarantee Finance, click here.

The beneficiary or favouree is the party who receives the bank guarantee and can 'call' on it if payment of the money is required or contractual obligations are not being performed.

In addition to the security being deposited directly with the bank issuing the bank guarantee, Assuro will charge fees based on the bank guarantee product that is selected. Our lowest cost bank guarantee product has a one-off $399 establishment fee and no ongoing fees.

Custom pricing may be offered to members of our channel partners or individual users of the Assuro platform depending on the size or volume of bank guarantees being applied for.

There is no cost to set up an account with Assuro. Click here to register as a user. Once registered, you can apply for a bank guarantee.

Applications can be submitted online in minutes, and the bank guarantee can be finalised and dispatched within days.

No. The application process is entirely digital. However, we may need some physical documents to be emailed in order to complete our AML/KYC checks on individuals associated with the application.

The bank guarantee will be sent by express post to the nominated delivery address. It can either be sent to the issuer or directly to the beneficiary.

Simply contact your relationship manager at Assuro and complete a form. Alternatively contact Assuro at info@assuro.com.au or call us on 1300 134 315.

Bank guarantees established through the Assuro platform will automatically integrate with Assuro Cloud, our market-leading management platform. Assuro Cloud will allow you to set reminders, track the custodian, generate reports and utilise cost calculators to ensure that your business has tighter control over its bank guarantees and streamlined administrative processes.

You can nominate whether the bank guarantee will have an expiry date. Generally, this is a matter dictated either by the applicable contract or the beneficiary. Even if the bank guarantee doesn’t have an expiry date on it, Assuro Cloud will allow you to set an expected return date so you can be reminded to follow up the beneficiary once the bank guarantee should have been returned.

Yes. You can do this by creating a new bank guarantee and then using it to replace the existing bank guarantee but this will mean that for a short period of time you will have paid two security deposits.

The physical paper-based document will be sent via registered post to the nominated address. Only the application process is digital.

The bank guarantee issued will be from the nominated bank and with the bank’s logo on the guarantee. Assuro will not feature on the guarantee itself in any way.

Assuro can connect you with our specialist business-to-business lending partners who offer a range of financing options, including unsecured loans, secured loans and lines of credit.