Bank guarantees case study

Security deposit guarantee in the retail industry

The problem

Paul Jeffress wanted to open a clothing store and find a shop to rent within a shopping centre. However, the shopping centre required Paul to submit a bank guarantee (rental bond) for $25,000 the following business day.

The solution

Paul approached several Banks but found that only Commonwealth Bank could provide the bank guarantee the following business day. By providing cash as security (in Paul’s case, a Term Deposit), the Bank was able to issue the bank guarantee within a market leading turnaround time*.

The result

Paul was able to safely secure the rental agreement with the shopping centre. By using cash as security, Paul is also able to earn interest at competitive rates on the Term Deposit while the guarantee remains active.

*Bank Guarantees can be provided by the next business day or even sooner. Applies to bank guarantees of less than $100,000 which are 100% secured by cash. Other conditions apply.