To initiate a Guarantee Issuance within RIVO, users must first navigate to the Products module and begin the creation of a new guarantee application. The Basic Details section constitutes the initial phase of the workflow and captures the essential information required for processing the guarantee request.

The guarantee creation process typically follows the sequence outlined below:

Basic Details → Participants → Additional Details → Attachments → Sign → Send to Bank

To begin the procedure:

1. Select the Create (+) option from the left navigation panel.
2. A list of transaction types will be displayed.
3. Choose Outgoing Guarantee to initiate the guarantee issuance process.

Commence Guarantee Creation

Upon selecting Outgoing Guarantee, the system will display the New Guarantee interface, enabling users to initiate the transaction.

Users may select one of the following options:

• Start as Draft – Begin entering details and save the application for subsequent completion.
• Create New – Manually input all guarantee information.
• Generate using AI – Upload a document (PDF or SWIFT) to allow the system to automatically extract guarantee details.

Select Create New to manually enter the guarantee information. Subsequently, select the Guarantee Type.

The system will prompt the user to specify the type of guarantee required.

The available guarantee types are as follows:

• Advance
• Bid Bond
• Credit
• Credit Card
• Customs
• Lease Guarantee
• Payment
• Performance
• Warranty
• Other

Select the appropriate guarantee type and click Continue to proceed.

Enter Basic Guarantee Details

Within the Basic Details section, enter the mandatory information as outlined below:

Note: Please provide the guarantee details along with your unique guarantee reference number, which will be utilized throughout the guarantee lifecycle.

Enter the guarantee amount and select the currency from the available options. You may also specify any supplementary amount in the free text field.

The requested issuance date establishes the commencement date of the guarantee and may be adjusted to any valid future date.
For the expiry date, select one of the following options:

• A fixed future expiry date

• No expiry (unlimited)

• Conditional expiry

The applicant reference may be auto-generated to uniquely identify each transaction. For further information, please refer to the Auto Generate Applicant Reference article.

Applicants may also add a new bank for issuance by selecting Add New under My Bank Details. This action will redirect to the Bank Details screen. For instructions, please consult How to Create a Bank in RIVO?

Applicant, Obligor / Instructing Party and Limit Owner

RIVO supports guarantee issuance where the Applicant, Obligor / Instructing Party, and Limit Owner can be the same or different organizational units, depending on the corporate structure.

For example, a subsidiary may be the Applicant, while the Head Office acts as the Obligor / Instructing Party, and another parent entity provides the credit facility as the Limit Owner.

Party Roles

Applicant

• The legal entity on whose behalf the guarantee is issued.
• This entity is shown on the official guarantee document.
• The Applicant can be different from the entity initiating the transaction.
• Applicant information is visible to all participants.

Obligor / Instructing Party

• The entity that initiates and manages the guarantee on behalf of the Applicant.
• It can be the same as or different from the Applicant.
• The Instructing Party has permission to manage the guarantee lifecycle.
• Its information has restricted visibility based on the defined permissions.

Limit Owner

• The entity whose credit facility is used for the guarantee and which is liable in the event of a claim.
• The Limit Owner is optional.
• If no Limit Owner is selected, the credit limit is checked against the Obligor / Instructing Party.
• The Limit Owner has view-only access.

Acting on Behalf of Another Unit

When creating a guarantee, the user can select “Acting on behalf of another unit”.

Once selected:

• Obligor / Instructing Party becomes mandatory.
• Limit Owner can be selected optionally.
• The user can select the relevant organizational units they have access to.
• All three roles can be the same or different entities.

Credit Limit Validation

The credit limit is checked against the Limit Owner.

If the Limit Owner is not specified, the limit is checked against the Obligor / Instructing Party. If the Limit Owner is changed while the deal is in process, the system recalculates the available limit based on the new entity.

SWIFT Tag Mapping

The Applicant and Obligor / Instructing Party are also distinguished in the SWIFT message:

• Tag 50 – Applicant: Contains the details of the legal entity on whose behalf the guarantee is issued.
• Tag 51 – Obligor / Instructing Party: Contains the details of the entity instructing/managing the guarantee.

Click Continue to proceed to the next section.

Enter the Beneficiary Details:

In the "Who is the beneficiary of this guarantee" section, enter the mandatory information as indicated below:

Domestic versus International Guarantee

The system automatically determines whether the guarantee is Domestic or International based on the countries of the applicant and beneficiary.

Domestic Guarantee

A Domestic Guarantee occurs when: Applicant Country = Beneficiary Country.

Example: Applicant Country: France and Beneficiary Country: France.

In this case, the guarantee will be classified as Domestic.

International Guarantee

An International Guarantee occurs when: Applicant Country ≠ Beneficiary Country.

Example: Applicant Country: France and Beneficiary Country: Germany.

In this instance, the guarantee will be classified as International.

Important Notice

⚠️ The Domestic/International classification cannot be modified once the beneficiary details have been saved.

Once the beneficiary information is entered and saved within the Participants section, the system will automatically lock the classification.

If an incorrect classification is saved, the user may be required to cancel and recreate the guarantee transaction.

Click Continue to advance to the subsequent section and complete all mandatory fields.

Enter Contract Details - Contract Details

• Contract Number – Enter the reference number associated with the commercial agreement between the applicant and beneficiary.
• Date of Contract – Select the contract signing date using the date picker.
• Contract Amount & Currency – Specify the total contract value and currency (e.g., EUR, USD).
• Guarantee Percentage – Define the portion of the contract amount covered by the guarantee.
  This is typically stipulated in the contract (e.g., 10%, 20%).
• Additional Details – Include any relevant notes that provide context regarding the contract.
• Enter Underlying Business Transaction Details (Mandatory) – This is a required field and one of the most critical inputs. Clearly describe the nature of the transaction (e.g., supply of goods, construction project), the scope of work or services, and the key obligations of the applicant.

Select the Legal Form of the Guarantee

You must select the legal structure agreed upon with the beneficiary:

Applicable Rules – Select internationally recognized rules (if applicable), such as:

• URDG (Uniform Rules for Demand Guarantees)
• Or leave as “None” if not applicable.
• Other Rules Details – Specify any other applicable rules.

⚠️ These selections must correspond with the beneficiary’s requirements.

Define Local Bank Involvement (Is a local bank required?)

• No – The guarantee is issued directly (either paper or digital).
• Yes – Advise – The guarantee is sent via SWIFT and advised to the beneficiary through their local bank.
• Yes – Issue – The guarantee is issued to the beneficiary via their local bank, which issues a local guarantee.

Additional Participants:

Users may add additional parties by selecting “Add Participants” and specifying the following:

• Role
• Entity Type
• Party Name

Enter Guarantee Text

Users may select one of the following options:

• Use Corporate Standard Wording – The guarantee text predefined by the corporation will be applied.
• Use Bank Standard Wording – The guarantee text predefined by the bank will be applied.
• Free Text – Users may manually input or customize the guarantee wording as necessary.

Define Guarantee Recipient – Specify the intended recipient to whom the issuer should send the guarantee.

• Send to Beneficiary – The guarantee is sent directly to the beneficiary.
• Send to Applicant – The guarantee is first sent to the applicant.

• Send to a Different Address – Allows specifying an alternate recipient.

  

Select Delivery Method – What Delivery Method do you wish to use?- Please specify the preferred delivery method.

Users must select the method by which the guarantee will be delivered.

Available options include:

• By Collection
• By Courier
• By Mail
• By Hand Delivery (Messenger)
• By Registered Mail / Airmail
• Other Method

This selection ensures proper handling and tracking of the guarantee document delivery.

Charges Details – Charges

Specify which party will bear the issuing bank charges – Applicant or Beneficiary.

For additional information, enter further details regarding charges.

Demand / Claim Details – Provide instructions related to claims under the guarantee.

• Documents and Presentation Instructions – Define the documents required when submitting a claim.

• Multiple and Partial Demand Details – Indicate whether partial or multiple claims are permitted.

Auto Extension Details – This section is used to define the conditions for automatic extension of the guarantee, if applicable.

Field: Auto Extension is – Users may select one of the following options:

• Same date one year later – The guarantee will automatically extend to the same date in the subsequent year.
• For a specified number of calendar days after the latest expiry date – The guarantee will be extended by the specified number of days from the current expiry date.
• Using a specific extension clause – A custom extension clause will be applied in accordance with the agreed terms.

Final Expiry Date for Auto-Extension – The ultimate date until which the guarantee may be automatically extended.

Non-Extension Notification Details – Instructions or wording to notify the beneficiary if the guarantee will not be extended.

Days Before Notification – The number of days prior to expiry when the non-extension notice must be issued.

Attach Supporting Documents – Attach Guarantee Contract/Deal

Key Features: Upload guarantee contract or supporting files

• Maximum file size: 10MB
• Supports drag & drop or browse upload methods

Review & Sign – Users must review all details prior to submission.

Review Includes:

• Basic Details
• Participants
• Additional Details
• Attachments

Additional Actions:

• Add Comments/Instructions to Issuing Bank
• Select the Sign checkbox to confirm authorization

Confirmation

Upon signing:

• The system will display:
  “Transaction completed successfully”
• The status will update to:
  Issuance – Approved(Sent to Bank)