Bank guarantees

Businesses can have concerns about trading overseas because of geographical distance and longer payment periods. To help you trade with more confidence, ASB offers a range of bank guarantees.

Benefits at a glance

  • Have the confidence to trade internationally because we vouch for the financial or performance stability of your company.
  • When importing, you can secure supply from overseas manufacturers to drive certainty of supply to support your local sales.
  • When exporting, you can confidently pitch for long-term (multi-year) contracts
  • Peace of mind that you will receive financial compensation if your trading counterpart fails to fulfil the contract

About bank guarantees

There are a number of financial risks associated with international trade. ASB offers three types of bank guarantee which can help mitigate your risks and give you more assurance.

Performance guarantee

A performance guarantee gives the importer financial protection by guaranteeing that the exporter will fulfil their contract terms and conditions. If the exporter fails to supply the goods and services, we will compensate the importer by paying an agreed amount, typically 5% to 10% of the full contract value, but it can be up to 100%.

For an exporter, this type of guarantee helps you secure long-term commercial contracts, create certainty around future business flows and unlock new markets.

Bid bond

If you are an exporter bidding for a commercial contract overseas, we can provide you with a bid bond to help with your bid which guarantees the financial stabillity of your business. If you win the contract, the bid bond can be converted into a performance guarantee.

Advance payment guarantee

To fund larger, longer-term projects, an exporter is likely to need advance payment from the importer. To give the importer financial protection, ASB can provide an advance payment guarantee, which guarantees the exporter's performance by compensating the importer should the terms of the contract not be met.

Next steps

Enquire now

Email the Trade Finance and Foreign Currency teams below.

Trade Finance

Foreign Currency

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We're here to help, 8.00am to 5.00pm NZT, Monday to Friday.

Trade Finance

Foreign Currency

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FastNet Business International

If your business relies on exporting or importing, FastNet Business International can save you time and reduce costs. Use it to manage international payments, operate ASB Foreign Currency Accounts, set up import letters of credit and view your ASB trade finance facility.

ASB's terms apply. Rates and fees subject to change.

International business Bank guarantees