Assure Clients and Suppliers of Your Financial Integrity
If you're bidding on domestic or international contracts you're often required to demonstrate your performance capability or ability to meet your contractual obligations by posting guarantees.
If the success of an important contract hinges on a guarantee that you are able to perform or pay, your business could benefit from Guarantees from RBC Global Services.
A Guarantee is an essential tool to help your business establish its performance capability and financial integrity with clients and suppliers.
RBC Global Services offers a variety of guarantee solutions:
Bid, Performance and Advance Payment Guarantees
Bid Bonds or Tender Guarantees - To ensure that suppliers submit serious offers, tenders often call for up-front cash deposits or irrevocable guarantees. With an RBC Global Services' bid guarantee, you can establish your credibility without tying up your cash.
Performance Bonds or Guarantees - Successful bidders often require a performance guarantee for a percentage of the contract amount. RBC Global Services enables you to meet your contract requirements and assures your client of your ability to perform.
Advance Payment Guarantees - If you require an advance payment from your client, an RBC Global Services' guarantee assures the client that their advance will be repaid by RBC if you fail to meet your contractual obligations.
Advance Payment of Holdback Under Contract - Payment retentions or holdbacks can extend years after the completion of a project. If you require cash before the end of the holdback period, you can arrange to have your client pay the holdback in advance, in exchange for RBC Global Services issuing a guarantee to the client.
Guarantees for Common Business Transactions
Borrowing Money - when negotiating a loan or mortgage, an RBC Global Services' guarantee will assure the lender of repayment.
Purchase or Lease Agreements - When you are purchasing goods or acquiring or leasing a property, an RBC Global Services' guarantee assures the seller or lessor of your ability to honour the terms of the agreement.
Utility Service Contracts - Guarantees can facilitate contracts with public utilities, gas companies, etc. that may need assurance of your ability to pay for their services.
Handy Replacement for Certified Cheques - Guarantees, issued by RBC Global Services to your payee, are a convenient substitute for certified cheques to pay for customs duty, stamps, etc.
Financial Clout for Commercial Paper - If you wish to issue commercial paper to raise funds (and if you qualify for credit) an RBC Global Services' guarantee will help you borrow at better rates.
