Standby letters of credit and guarantees

The guarantee constitutes a bank commitment to a third party, on behalf of the client, ensuring the compliance of a contractual obligation. The assured obligation can be a payment, a delivery of goods or the rendering of a service, the execution of a work, the refund of an advanced payment, a debt with customs or any other obligation derived from a contract.

“Standby letter of credit” is how the “independent guarantee” is called in the US. Its characteristics, uses and content are essentially the same under both denominations.

AtBanco Sabadell we offer you:

• A flexible, professional and highly experienced service when issuing of international guarantees
• Immediate notification and the best advice on guarantees received

Types of guarantees

• Payment guarantee
• Refund of advanced payments (Repayment guarantee and Advance payment guarantee)
• Performance guarantee (also called Performance bond)
• Tender guarantee (Tender bond; Bid bond; Guarantee for preliminary deposit)
• Maintenance guarantee and Warranty guarantee
• Before official bodies: Customs guarantees, ATA carnet, European transit guarantees or other guarantees required by domestic regulation authorities

If you require further information, please consult our publication The documentary credit and the warranty(, 80 pages, 983Kb, spanish version)