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Guarantee

Helps to reduce the risks arising from the contract and to receive or offer more favorable payment terms.

The guarantee is the most common way of hedging both in domestic and international business, allowing to reduce the risks arising from the contractor, to receive financial compensation easily and promptly and to avoid the risks associated with advances.

Guarantee is an irrevocable obligation of the bank to pay the amount fixed in the guarantee letter to the guarantor of the guarantee if the client (Coop Pank's client) does not comply with the contractual obligations in front of the guarantor (business partner). The amounts paid by the bank must be returned to the bank by the client.

The needs of the companies are different and, as a result, we offer different types of guarantees in order to be able to find the most suitable for your business. We consider the guarantee to be issued as a possible loan in the future, and therefore the application for a guarantee is equivalent to applying for a loan, and the guarantee is required to set up a collateral like a loan.

When issuing guarantees, we are guided by the international URDG 758 ("Uniform Rules for Compliance") and laws of Republic of Estonia.

Futher information

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Advance guarantee
Bank guarantees the repayment of the prepayment made to the beneficiary if the client of the guarantee fails to fulfill the contractual obligations.

Payment guarantee
Bank guarantees the recipient of the guarantee for the payment of goods or services if the contracting authority does not itself do so within the agreed time frame.

Bid guarantee
Bank guarantees the organizer of the public tender (the guarantor) the reimbursement of expenses if the tenderer waives the offer, does not conclude an agreement under the terms of the offer or fails to provide a guarantee of performance to the recipient after the conclusion of the contract.

Performance warranty
Bank guarantees compensation to the recipient if the contracting authority does not comply with the agreement.

Maintenance period warranty
Bank guarantees the recipient (buyer) the indemnity in the event that the customer does not remedy the deficiencies in the goods delivered or works performed.

Customs guarantee
Bank ensures the payment of customs duties to the Tax and Customs Board and, as a consequence, will make the receipt of the goods faster for the contracting authority.

  • mortgage of immovable property (plot of land, building, apartment)
  • term deposit
  • KredEx guarantee
  • MES guarantee
  • commercial pledge for fixed assets and other movable property
  • the vehicle's registerpant
  • private individual or legal person as a guarantor
  • other collateral accepted by Coop Pank

Before applying for a guarantee, we recommend that you agree on the details of the transaction, including the type of guarantee, amount, expiry date, and the form for transmitting the guarantee letter, with the business partner.

Required documents

  • application
  • financial statements
    • annual accounts for the past 2 financial years (audited accounts if subject to an audit obligation and no accounts have been submitted to the Commercial Register)
    • quarterly financial statements for the current financial year, not older than 2 months
  • the use of the guarantee, description of the guarantee of the performance of the guaranteed obligations
  • documents on which the guarantee is based - cooperation agreement, order, invoice, guarantee form, etc.
  • expert assessment of the collateral

Requirements for the applicant

  • registered company in the Republic of Estonia or self-employed person
  • presence of a current account at Coop Pank
  • settlement in Coop Pank or another bank for the last 6 months
  • advance guarantee or loan experience

To apply for a guarantee

Review Coop Pank's price list.