Kelly's PR company has outgrown its current office space, so she’s about to purchase a larger one to accommodate her growing staff numbers.
Rather than pay a cash deposit for the new office space, she takes out a Bank Guarantee secured against her company's current offices. This allows her company to make the move and also maintain their cash flow.
This Bank Guarantee secures the purchase and once Kelly's company sells their old office space, she uses the funds from the sale to pay out the balance.
Your business could avoid paying the full amount of an upfront deposit if you secure your Bank Guarantee, such as:
Secure your bank Guarantee with a wide range of assets:
There are ongoing fees while the Guarantee is active. You'll get your security back when your Guarantee expires unless we've had to use it to pay a claim to your Favouree. Your final ongoing fee will be pro-rated
Your Favouree is the third party you pay the Bank Guarantee to. Your Favouree must:
You’ll need to collect the following information from your Favouree before applying:
Fees differ based on the type of security provided for your Bank Guarantee.
For Bank Guarantees covered by other assets or over $1 million
If you’re a trust, partnership or unincorporated entity, you’re unable to apply.
You can execute and accept your Bank Guarantee documents online securely using SmartSign. This applies to cash covered Bank Guarantees under $250,000. Other conditions apply.
It's important you supply the correct information as you'll pay a fee if your application needs to be reworked.
Here are some other products that might meet your business needs:
1You can choose to accept the Bank Guarantee via your Small Business Specialist, Relationship Manager or in your local branch. Alternatively, you can elect to have the Bank Guarantee emailed directly to your customer or supplier.
This information is current as at 30 July 2020 and is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should consider the appropriateness of this information to your circumstances before acting on it.
Credit provided by the Commonwealth Bank of Australia. These products are only available to approved business customers and for business purposes only. This offer cannot be used to refinance existing debt or purchase an asset. Applications for finance are subject to the Bank's eligibility and suitability criteria and normal credit approval processes. View our current Terms and Conditions for Business Finance, Financial Services Guide and Business Transaction Account Terms and Conditions and consider them before making any decision about these products. For current interest rates, visit Business banking rates and fees. Rates are subject to change. Fees, charges and Terms & Conditions apply.
Terms and conditions issued by Commonwealth Bank of Australia ABN 48 123 123 124 for CommBiz and NetBank are available online, or can be requested at any of our branches or by phoning us on 13 1998. Terms and conditions should be considered before making any decision about these products.