Guarantee GlossaryGuarantee Glossary

A guarantee is a good way of providing security for your company when you do business abroad. It also strengthens your position when trying to win an international order or assignment. Some terms and expressions used may not be immediately familiar if you have not used guarantees before.

You can find an explanation of terms and expressions relating to guarantees in our glossary.

 
Advance payment guarantee  See Types of guarantee 
Advise  To give information about the guarantee to the beneficiary (person who receives the guarantee) of another bank, without responsibility 
Applicant Person requesting the guarantee
Avalise To guarantee payment of a draft or bill of exchange; used in certain cases instead of a payment guarantee
Beneficiary The person in whose favour the guarantee is issued
Bid Bond See Types of guarantee
Conditional guarantee The bank awaits agreement between the parties or a judicial decision before paying
Counter-guarantee When National Irish Bank asks a foreign bank to issue a guarantee, the foreign bank will demand a guarantee from National Irish Bank as security - a counter-guarantee
Demand guarantee Claims under the guarantee are paid against a simple declaration of default

Want to know more?Want to know more?

Trade & Export Finance products and services

Read More about our trade & export finance products and services in these booklets (PDF):

Download factsheet on Documentary Credits
Download factsheet on Int'l Guarantees
Download factsheet on Collections
Download factsheet on Business Online

To read PDF documents, download Adobe Reader®

Document Checklist
What to look out for in every document involved in the documentary credit process:

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