Process of an advance payment guarantee
RAIFFEISENBANK
2.
Applicant
(Supplier)
3.
4., 7.
1.
6.
Beneficiary
(Customer)
5.
Key
1.
2.
3.
4.
5.
6.
7.
The supplier concludes a purchase agreement with the customer which contains as one of its conditions an advance payment to
be made against submission of an advance payment bank guarantee.
The supplier (applicant) submits Raiffeisenbank a request for issuance of an advance payment guarantee, including documents
specifying the required conditions of the guarantee.
Raiffeisenbank concludes with the applicant a contract on issuance of a guarantee/credit agreement.
Raiffeisenbank issues a guarantee and usually sends it direct to the beneficiary (customer) in accordance with the application of
the applicant (supplier).
The supplier makes the contractual delivery to the customer.
If the supplier (applicant) does not meet its contractual obligations secured by the guarantee, the beneficiary (customer) issues
a request for payment under the guarantee to Raiffeisenbank.
After receiving the request and verifying that the guarantee’s conditions have been met, Raiffeisenbank pays under the guarantee
in favour of the beneficiary.
Raiffeisenbank a.s., www.rb.cz