Re: How does bank guarantee for a business work?
Posted: Mon Mar 28, 2016 3:58 pm
Hello futsalclub. Welcome to the forums.
You can use a bank guarantee or indemnity to free up your cash flow through a cash deposit to your suppliers and a deposit bond to your landlord, if you're leasing a commercial property.
The bank guarantee itself will be backed by adequate security whether it's a residential property, commercial property or a cash security such as savings or a term deposit.
If you provide a residential property as security, you can get a bank guarantee of up to 80% of its value. If you provide a commercial property then you can get a bank guarantee of up to 50% to 70% of the property value.
For example, you can get a bank guarantee for up to $300,000 for your business if you have a $600,000 residential property with $300,000 owing.
Cheers,
Otto
You can use a bank guarantee or indemnity to free up your cash flow through a cash deposit to your suppliers and a deposit bond to your landlord, if you're leasing a commercial property.
The bank guarantee itself will be backed by adequate security whether it's a residential property, commercial property or a cash security such as savings or a term deposit.
If you provide a residential property as security, you can get a bank guarantee of up to 80% of its value. If you provide a commercial property then you can get a bank guarantee of up to 50% to 70% of the property value.
For example, you can get a bank guarantee for up to $300,000 for your business if you have a $600,000 residential property with $300,000 owing.
Cheers,
Otto