The bank guarantee is one of the most effective ways to ensure the security of the transaction. A financial institution charges a fee for providing such a service.
In essence, a guarantee is a loan product, but its cost is much cheaper than a cash loan. Any banking organization licensed by the Central Bank can issue guarantees. However, each beneficiary sets its own requirements for them.
These customer wishes are unified and secured by Article 45 44-FZ, according to which the Ministry of Finance is the body responsible for establishing requirements for financial institutions issuing bank guarantees. Every month, the Ministry of Finance publishes an updated register of institutions that are entitled to this activity.
Basic concepts
A bank guarantee is a written obligation of a financial institution to pay a certain amount of cash to a customer if the principal does not fulfill the terms of the contract. The specified tool allows for the proper fulfillment of obligations under the contract. When registering some transactions, this method of risk reduction is a prerequisite for cooperation.
Three actors participate in such a process:
- Beneficiary - creditor (customer) under the main contract. It is his interests that will be protected.
- Principal - debtor (contractor) under the main contract. This is the one who initiates the provision of the obligation.
- A guarantor is a bank that incurs obligations for a certain fee. That is, the guarantor is a bank that provides a credit line, payment of uncovered expenses or the amount prescribed in the contract to the beneficiary. Lists of accredited institutions capable of acting as guarantors are regularly updated (Sberbank of Russia, VTB 24, others). Previously, not only banking organizations, but also ICs, could act as guarantors. However, today (in accordance with the law) insurance companies are not vested with such powers.
Varieties
The main classification of bank guarantees is determined by the type of transaction secured:
- Tax, customs. Such bank guarantees ensure the proper fulfillment of obligations to the specified state bodies.
- Advance. Allows you to provide a refund of advance payments if the terms of the transaction are not met by the deadline or volume.
- Billing. Allows you to ensure timely payment for delivered goods or work performed.
- Performance Guarantee. Provides a full and timely delivery of goods, provision of services, performance of work.
- Competitive (tender). Allows you to reduce the risk of the customer if the winner of the tender refuses further cooperation.
The most popular product is a tender guarantee; through its banks, the principal ensures the participation in tenders, auctions, tenders, tenders. The cost of a tender guarantee is usually 5% of the contract amount. Such a product is valid until the customer and the winner conclude an agreement.
Another case when a bank issued guarantees is a purchase. Usually these are bulk deliveries. For example, the supplier sends the goods to the customer without prepayment. In the case when the client does not pay for the products received, the seller contacts the bank and receives compensation for damage. That is, the payment guarantee is a tool that allows you to cover the risk of the supplier from non-payment of funds by the buyer. Such a service is often used for deferred payments and commodity loans.
There are other types of bank guarantees, depending on the purpose of the main transaction. In addition, they are classified according to other characteristics - irrevocable and revocable.
What are you for?
Understanding the essence of a bank guarantee is quite simple by looking at a simple example. The scheme of her work is as follows:
- The principal (firm X) enters into a contract for the supply of a consignment of goods with the beneficiary (firm Y), acting as the buyer or customer of the specified goods.
- The beneficiary requires a guarantee that the terms of the contract will be fulfilled in full, that is, all goods will be delivered on time.
- To this end, the principal or contractor applies to a third party - the guarantor (bank Z), in order to receive a guarantee in the form of a written agreement.
- For a certain commission, the bank undertakes to pay the beneficiary a certain amount, for example, 30% of the cost of the main contract, if the principal does not fulfill its conditions.
- If such a warranty case occurs, the principal in writing requires payment of a fee.
- The guarantor pays the indicated amount to the beneficiary, and then demands from the principal a regressive refund of the amount of money paid.
The transaction can be secured in another way - by demanding a cash deposit from the company, however, in this case, the executing company will have to withdraw the indicated amount from its turnover. This approach is disadvantageous, because often it is necessary to attract borrowed funds for this. Then doing business on these conditions is not profitable ..
What is needed for a bank to issue a bank guarantee?
Design and stages
The whole procedure of registration can be described in seven stages:
- The emergence of the need to secure a contract.
- Search for a guarantor bank by an executor.
- Drawing up a guarantee application.
- Sending application and documentation to the bank.
- Clarification of customer solvency.
- Registration of an agreement between a client and a bank.
- Registration of a guarantee agreement.
You can find a suitable bank on your own or use brokerage services. In addition, you can contact any representative office of Sberbank - it works without intermediaries, exclusively directly.
List of documents
Providing a guarantee obligation, a banking organization risks its own funds, which will have to be paid if an event specified in the contract occurs. Subsequently, the client will have to return the indicated funds, therefore, the bank needs to make sure of its solvency.
The package of documents that will be required when filling out a guarantee obligation at a bank in different financial institutions may differ slightly. As a rule, the following documents are required:
- Application form.
- Extract from ERGUL, copies of TIN received during the last month.
- Copies of the registration certificate and the minutes of the founders meeting, notarized.
- The current list of all founders of the LLC, copies of their passports.
- Copies of certificates, licenses.
- Documents confirming the ownership of the premises, or lease agreements.
- Copies of orders on the basis of which the chief accountant and manager are appointed, copies of their passports.
- Report reflecting the profit and loss of the organization for the last year, balance sheet.
- Copy of the contract of the secured transaction.
- Financial statements for the previous 6 months.
- If the organization works on the simplified tax system, you will need to provide a declaration of expenses and income for the previous 12 months.
- If the company operates on UTII, you need a tax return.
- Auditor's report on the audit.
- Certificate confirming the absence of debts.
In addition, a banking organization has the right to require copies of documents under similar contracts that have been successfully completed earlier, and other evidence of the organization's reliability.
The bank guarantee is regulated under 44 FZ.
Security
Some financial institutions offer to purchase a bank guarantee from them without collateral. But in practice this is rare. As a rule, banks prefer not to take risks. Therefore, they basically always require that the client provide a highly liquid collateral. An integral part of the execution of an obligation to pay funds is the guarantee of the bank. It is worth noting that the amount that can be obtained from the sale of collateral should cover all expenses of a financial institution related to an obligation to a third party. Applicants can offer the bank:
- Precious coins.
- Stocks.
- Goods.
- The property.
- Vehicles.
That is, the pledge securing the contract must have high liquidity.
Requirements
Before the bank agrees to issue a guarantee, it without fail and in the most thorough way checks the financial stability of the client. Of course, faking any documents is unacceptable.
The principal must comply with the following requirements:
- Credit history should not contain past due debts. In some cases, banks require a complete lack of loans.
- Reporting should not contain unprofitable periods, except for seasonal ones.
- The turnover of the organization must be consistent with the size of the obligation.
- The organization must conduct its activities in the market for at least six months.
Often, banks issuing bank guarantees require a current account with their financial institution.
Sample contract
The legislation does not impose strict requirements regarding the preparation and appearance of a bank guarantee agreement. However, the main provisions of such an agreement are dictated by the regulatory framework. They must be reflected in the agreement.
Among the main legislative documents:
- Civil Code of the Russian Federation, Art. 368, part 1, paragraph 4.
- FZ-223 - for some legal entities.
- FZ-44 - for municipal, state contracts.
Registry Check
Each bank guarantee under 44- is obligatory to be entered in the Register. To check it, you should visit the site of the Unified information system of the procurement sphere. In accordance with this law, information must be entered into the system one day after the execution of payment obligations.
Other guarantees issued in accordance with 223- are not entered in the register. You can check them on the website of the Central Bank in the section "Directory of credit institutions". In this case, you will need to find the bank, its turnover sheet, and then column 91315, which reflects the turnover under guarantees.
A number will be displayed in this column. It must be compared with the amount of the issued banking obligation. If the amount is not very large, then it is allowed to make bank guarantees to the bank at the end of the quarter.
List
Entrepreneurs can very easily find out where to turn to receive such a service. The Ministry of Finance updates the list of bank guarantee banks every month. That is, you can check the organization’s right to this activity. This can be done by visiting the portal of the Ministry of Finance. Banks issuing bank guarantees:
- UniCredit Bank JSC.
- GUTA-BANK JSC.
- VTB Bank (PJSC).
- PJSC AKB Svyaz-Bank.
- PJSC Sberbank.
This is just some part. The list of more than 250 financial institutions.
Validity of receipt
The beneficiary can receive compensation under the guarantee only if there are justifications. They may be:
- Violation by the contractor of the terms of the basic agreement.
- Refusal of the contractor to provide documents confirming the proper execution of the contract.
- Failure to comply with the terms of the transaction by the contractor.
The list of necessary documentation should be reflected in the guarantee agreement.
How much to pay
The cost of a guarantee obligation depends on many factors and conditions of the transaction, on the subject of the contract, its duration, amount. As a rule, it makes up 2-10% of the contract amount.
An important factor is the availability of cash or property security, as well as a guarantee. If there is no security, the fee for issuing a guarantee is almost doubled.
Often, banks issuing guarantees under 44 Federal Laws establish a minimum commission amount equal to a fixed amount, for example, 10 thousand rubles. The commission may not be lower than this figure, even if the guarantee amount is 50 thousand rubles.
Calculation Example
Suppose the amount of the contract is 10 million rubles, and the amount of the guarantee is 30% of this figure, that is 3 million rubles. If the contract is valid for 12 months, and the annual commission is 6%, obtaining a bank guarantee will cost 180 thousand rubles (1 year * 6% * amount of a bank guarantee).
Banks under 44 Federal Laws provide such services to ensure maximum transaction security. This procedure is mandatory for tenders and public procurement. The specified product is much more profitable than a loan for collateral under a contract, therefore it has rather high popularity.