Tender guarantee is often required when taking part in tender processes to ensure that:

1. the tender is not withdrawn before the bidding round is finished;
2. the company that wins the tender fails to sign the contract;
3. the company that wins the tender can place a performance guarantee for delivery.

Secure payment for contracts for product or service delivery. The guarantee can apply to individual deliveries or an ongoing agreement. The guarantee amount is normally the whole contract amount or the outstanding contract amount with the deduction of the advance payment.

Secure repayment of advances if the supplier does not deliver the product or service as agreed. The advance payment is normally between 10-20 per cent of the contract amount.

Secure claims against the tenant if rent, joint expenses etc. are not paid, as well as clearing of the premises after moving out. The guarantee is drawn up in accordance with the contract.

The guarantee amount is normally an amount equal to 3 or 6 months’ rent.

The guarantee secures delivery in accordance with the contract. The guarantee amount is normally 10 per cent of the contract sum.

Placed vis-à-vis the applicable transport authority.

Used to secure contractual repayment of loans in another financial institution. The guarantee amount is normally equal to the loan amount.

Ensures that obligations after the delivery of goods or services are met in accordance with the contract. The guarantee amount is normally between 5-10 per cent of the contract sum.

Placed vis-à-vis the government, where the basis is a law or regulation.

When DNB places a guarantee, we undertake a payment obligation vis-à-vis guarantee creditors. If we have to pay a claim that is received under a guarantee, we’ll seek a refund from our customer (guarantee debtor).

A guarantee therefore entails a credit risk to DNB and an application for a guarantee/guarantee facility limit will undergo a credit assessment in the same way an application for credit or a loan.