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.