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What Guarantee types are available?

Kristen Jude Srinivasan
  • Updated

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The Guarantee Types available on RIVO are:

Guarantee Selection 

To choose the Guarantee Type

  1.  
    1. Click the Guarantee of your choice.

   2. Click ‘Continue’ to go to next card.

 

Not sure which Guarantee to choose? see the details below:

Advance Guarantee

An Advance Payment Guarantee is issued to protect a buyer who makes an advance payment to a supplier or contractor. If the supplier fails to deliver the goods, services, or fulfill the contract terms, the buyer can claim a refund of the advance payment under the guarantee.

Bid Bond

Bid bond is a bank guarantee by which a guarantor (the bank) undertakes to pay to a beneficiary certain amount of money if a tender participant (the guarantee principal) revokes its bid during the bidding process or refuses to conclude contract in accordance with conditions of the accepted tender.

 

Credit

A credit guarantee scheme provides third-party credit risk mitigation to lenders through the absorption of a portion of the lender's losses on the loans made to SMEs in case of default, typically in return for a fee.

 

Credit Card

A credit card is a financial instrument issued by a bank with a predetermined limit that allows you to conduct cashless transactions. The credit limit is determined by the card issuer based on your credit score, credit history, and income

 

Customs

A customs guarantee is an agreement to cover debts arising from customs duty, import VAT and excise. If the debt has already arisen it is known as actual debt. If it arises later, it is known as potential debt. A customs guarantee is often required when duty is not paid at the time of import or export.

 

Direct Pay Guarantee

A Direct Pay Guarantee is a guarantee under which the guarantor bank commits to make payment directly to the beneficiary upon receipt of a compliant demand, in accordance with the terms of the guarantee. It provides the beneficiary with assurance of payment without requiring additional approval from the applicant at the time of claim.

 

Insurance Guarantee

An Insurance Guarantee provides financial protection against specified risks, losses, or contractual obligations. It ensures that the beneficiary is compensated if the insured party fails to fulfill its obligations or if a covered loss occurs.
 

Judicial Guarantee

 
A Judicial Guarantee is a guarantee issued to support legal or court-related obligations. It provides financial security required by a court or legal authority and ensures that any obligations, claims, penalties, or damages arising from a legal proceeding will be fulfilled if ordered by the court.
 

Lease Guarantee

 
A Lease Guarantee is a commitment that secures a tenant's obligations under a lease agreement. It ensures that the landlord will receive payment of rent and other lease-related obligations if the tenant fails to meet the terms of the lease.
 

Payment

Payment guarantees are financial commitments that require the debtor to make a repayment based on the terms outlined in the original debt agreement. Sometimes, the payment guarantee is backed with some form of collateral, such as property.

 

Performance

A Performance Guarantee is a contractors promise to complete the project undertaken. To further elaborate, a Performance Guarantee is a document that legally confirms that you, the contractor will complete the contract you have undertaken.

 

Property Guarantee

A Property Guarantee is a guarantee that secures obligations related to a property or real estate transaction. It provides assurance that financial commitments, contractual obligations, or payments associated with the property will be fulfilled, and compensates the beneficiary if the responsible party defaults.
 
 

Retention Guarantee

 
A Retention Guarantee (or Retention Bond) is a guarantee provided by a contractor to secure the correction of defects or the completion of outstanding obligations after a project has been completed. It allows the client to retain financial security while ensuring that any issues identified during the retention or warranty period will be rectified. 
 

Warranty

The manufacturer's written assurance to the customer who is purchasing the product that all of the product specifications and facts are true is defined as a warranty. This means that the product is well-made in terms of quality, fitness, performance, durability, and so on. If these facts do not satisfy you, the product will be repaired or replaced as needed within the warranty period. Companies offer warranties to instill trust in their products by demonstrating to customers that the company is confident in the product's quality.

 

Comfort Letter Guarantee

A Comfort Letter is a document that provides assurance regarding a party's financial position or ability to meet its obligations. Unlike a bank guarantee, it is generally not legally binding and serves as a statement of support or confidence rather than a commitment to pay.

 

By selecting the "Other" option, Rivo will also allow you to add various types of guarantees besides those already mentioned.

 

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