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.
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.
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.
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.
Email the Trade Finance and Foreign Currency teams below.
Talk to one of our International business experts.
If you trade overseas, it's important to remember that even small changes in an exchange rate can have a big impact on your profitability. That's because the difference in the total value of your deal comes out of your margin. We have a range of tools available to help you manage this risk more effectively, watch our FX videos.
FastNet Business internet banking is a powerful online banking platform that allows your business partners access to your ASB accounts. You decide what each person can see and do, so you can delegate your banking tasks without losing control.
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.
The Financial Markets Online module for FastNet Business internet banking lets you manage your foreign exchange requirements. You will be able to manage foreign exchange deals in real-time, complete foreign exchange orders and set up alerts for particular currencies.
ASB's terms apply. Rates and fees subject to change.