Guarantees

Guarantees are a means of managing various risks involved transactions in trade and have long been considered an assurance in commercial contracts.

Some of the guarantees, which we at Bank Pasargad are prepared to issue include:

Advance Payment Guarantees

This form of guarantee is typically required by the buyer when the seller asks for a sum of money at an early stage of the contract. If the Seller fails to fulfill his obligations, the buyer can recover the money paid. The duration of the guarantee may extend to the final delivery date plus a grace period.

Performance Guarantees

This type of guarantee is required to protect against non-performance of the seller's obligations and assures the good performance at the outcome.

Tender Guarantees

Tender guarantees are used to cover failures to fulfillment of any of the tender conditions by entities entering the tenders. They are usually handed in with the other documents required in the invitation to tender.

Retention Money Guarantees

Depending on the contract, a portion of the contract value may be held back by the buyer as the work is approaching the end. The seller may be able to release this “retained money” by presenting a retention money guarantee to the buyer.

Customers can apply for letters of guarantee in Bank Pasargad branches throughout the country.