01
The underlying obligation
Who is requesting the guarantee, for which contract or transaction, for what amount, and for how long.
SR Corporate - Guarantees and Sureties
Guarantees and bonds
Guarantees and sureties are used to ensure the fulfillment of an obligation. They may be required to participate in a bid, sign a contract, or carry out a business transaction. We’ll review the requirements and explore the options available to your company.
How it works
Key considerations
We'll help you understand which obligation is being secured, what collateral is being requested, and what commitments your company would retain.
02
The Alternative and Its Cost
What type of guarantee—such as a surety bond or other form of security—is accepted by the applicant, who can issue it, and what costs and requirements would be involved.
03
Duration and Commitments
When can a warranty claim be filed, what is the company responsible for if the warranty is used, and how is the cancellation processed?
How the warranty is assessed
We review the contract or the terms and conditions that require the guarantee, its amount, the term, and the text that the applicant must accept. Based on that information, we can determine which instrument fulfills the obligation and which entity should issue it. A surety bond and a performance bond are not interchangeable in all cases.
Before signing a contract, it is important to understand the costs and obligations involved, including any additional guarantees the company may require of you. You should also be aware of the situations in which payment may be claimed and what is required to terminate the guarantee. The issuance of the guarantee is subject to the assessment and terms and conditions of the entity providing it.
For more information: Bank of Spain - The role of a guarantee.
Before reaching out
Frequently Asked Questions
Do a guarantee and surety insurance serve the same purpose?
Both can be used to secure obligations, but they cannot be substituted without verification. It is necessary to determine which instrument the party requesting the guarantee accepts and what terms the issuing entity offers.
Who issues the guarantee?
The financial institution or insurance company that assumes the obligation, depending on the applicable instrument. Our role is to assess the need and assist with the preparation of the transaction; the issuance is the responsibility of that institution.
What documents should I prepare?
The contract or terms and conditions specifying the guarantee, the amount, who is requesting it, and the term. With this information, we determine the financial details and the documents that may be needed to review the transaction.
Have you been requested to provide a guarantee?
Tell us what procedure you need it for and what requirements they've asked you to meet.