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Guarantee Your Financial Commitments
If you’re bidding on domestic or international contracts, you’re often required to demonstrate your performance capability or ability to meet your contractual obligations. Let an RBC Guarantee assure your clients and suppliers of your financial integrity.
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Call our 24/7 Business HelplineWhy Choose an RBC Bank Guarantee
- Develop your business by being able to provide the guarantees required by critical contracts
- Avoid tying up valuable working capital by replacing cash holdbacks and payment retentions with RBC’s guarantee
- Save money by using guarantees when issuing commercial paper to raise funds
- Build credibility with companies you deal with, by offering guarantees under specific circumstances
- With RBC Global Trade™, issue and manage your guarantees online anytime, anywhere with time-saving features such as historical information, templates, reports and a user-friendly interface
When to use a Guarantee:
- If the success of an important contract hinges on your ability to perform a service or make a payment
- You wish to establish your business’ performance capability and financial integrity with clients and suppliers
- You need to guarantee lease payments on a commercial property
- You’re looking to assist with bidding on large projects by providing bid, performance and warranty bonds
- Your foreign subsidiary needs to secure credit facilities from a local bank
- You want to improve your financial standing by issuing guarantees rather than providing cash up front (i.e. for a down payment)
Consider these options to help support your RBC Guarantee:
Export Development Program – Export Development Canada
The Export Guarantee Program provides increased borrower risk coverage, allowing RBC to consider expanding financial support to exporting companies. We provide:
- Working capital and/or pre-shipment financing
- Foreign investment or acquisition financing
- Investment Tax Credit financing facilities
Best For:
- Financing domestic assets (guarantees up to 75%)
- Financing foreign assets (guarantees up to 100%)
Foreign Exchange Guarantee – Export Development Canada
The Foreign Exchange Guarantee is an irrevocable and unconditional 100% guarantee intended to substitute or supplement the collateral required to support foreign exchange hedging facilities.
- Covers 100% of a borrower’s exposure
- The guarantee is irrevocable and unconditional
- Includes coverage related to performance risk (i.e. performance, bid and advance payment bank instruments)
Best For:
- Exporters across sectors, regardless of company size
Performance Security Guarantee – Export Development Canada
The Performance Security Guarantee is an irrevocable and unconditional guarantee to cover 100% of the risk inherent in issuing a bank instrument.
- Covers 100% of a borrower’s exposure
- The guarantee is irrevocable and unconditional
- Claims are managed directly between RBC and EDC, with no action taken against the borrower
Best For:
- Commercial direct and indirect exporters regardless of company size
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