Bank guarantees for small business

Bank guarantee – is a form of contracts security when the bank guarantees execution of the Client’s obligations to a third party. As a rule, the bank guarantee is required when the counterparties have insufficient information about solvency of each other and they want to reduce their transaction-related risks.  

The international practice of financial service in this area was taken as a basis of our small business lending technology. One of the key aspects of this technology is the financial analysis of the borrower’s solvency held based on data on real condition of the client’s business. When performing the analysis, the bank’s employee will give the required advice and help to make fair assessment and adequate forms of managerial statements.   

Credit technologies of VTB Bank (Kazakhstan) make it possible to assess solvency and to make a decision on granting of the bank guarantee in a very short time.    

Target audience of the product 

Individual entrepreneurs who perform the activities without incorporation of a legal entity and legal entities – small business subjects

You can fill out the preliminary application for bank guarantee receipt and our managers will contact you to specify the conditions of bank guarantee.  

Types of bank guarantees of VTB Bank (Kazakhstan) 

• Tender guarantee; 
• Post tender guarantee of obligations performance; 
• Guarantee of payment; 
• Guarantee of obligations performance under a contract; 
• Guarantee of advance payment return; 
• Guarantee of advance payment intended use.

Sum of guarantees

For the Clients of VTB Bank (Kazakhstan) JSC SO: 

• in accordance with the provisions of tender documentation/contract entered into between the Principal and Beneficiary subject to currency legislation of the Republic of Kazakhstan; 
• the sum is defined with due consideration of the Client’s needs, analysis of his financial standing (at 100% coverage by money deposit – the financial analysis is not held);
• the sum of guarantee should not exceed 70% of the net average monthly turnovers on the account.

For the potential clients of VTB Bank (Kazakhstan) JSC SO:

• in accordance with the provisions of tender documentation/contract entered into between the Principal and Beneficiary subject to currency legislation of the Republic of Kazakhstan; 
• the sum is defined with due consideration of the Client’s needs, analysis of his financial standing (at 100% coverage by money deposit – the financial analysis is not held);
• the sum of guarantee should not exceed 70% of the net average monthly turnovers on the account; 
• the sum of guarantee should not exceed 50% of the average annual value of the client’s assets after deduction of the loaned funds obtained by the client from banks and organizations which perform separate types of bank operations.  

Currency of guarantee

• Guarantees to the benefit of the resident of the Republic of Kazakhstan (if the Principal is a resident) are granted only in national currency – Tenge;
• Guarantees to the benefit of the non-residents of the Republic of Kazakhstan are granted in the national or foreign currency – US Dollars, Euro, Russian Rubles and other currency in accordance with the provisions of a contract entered into between the Principal and Beneficiary subject to currency legislation of the Republic of Kazakhstan. 

Term of guarantee obligation

The term is stated depending on the tender documents provisions or conditions of a transaction within the frameworks of which the operations are held.  

Security*

• Covered bank guarantees should be secured by 100% money coverage pledged to the Bank;
• Uncovered guarantees – with provision of other security in a form of hard pledge (security should comply with the Pledge Policy of the Bank)* Blank tender guarantees.

If you have decided to take bank guarantee,

• Call VTB Bank (Kazakhstan) or fill out the preliminary application on the web-site;
• Discuss the questions you are interested in with our expert and make an appointment; 
• Consult with the expert as to the conditions of guarantee and set of the documents required to obtain it.