Bank Guarantee Cost: What You’ll Actually Pay to Get One Issued
Bank Guarantee Cost: What You’ll Actually Pay to Get One Issued
Bank Guarantee Cost: What You’ll Actually Pay to Get One Issued
How much does a bank guarantee really cost? Here’s the full breakdown — issuance fees, structuring retainers, success charges, and how your route changes depending on whether you have collateral or not.
If you’re applying for a bank guarantee, you’re probably facing one of two situations. Either you have collateral and access to a commercial bank — or you don’t. The cost structure depends entirely on which path you’re on. Here's the breakdown.
Scenario 1: You Have Collateral and a Banking Relationship
If you’re a corporate with hard collateral (cash, securities, or property) and an active credit line with a top-tier bank, your route is straightforward. You request the issuance through your existing relationship manager.
What You’ll Pay
Issuance fee:
Typically 0.75%–2.5% annually of the guarantee amount
Legal/documentation fees:
Usually included or capped at $1,000–$2,500
Interest:
If the bank treats the BG as a funded exposure (e.g. backed by a credit line), interest may apply depending on structure
Terms and Flexibility
Banks are usually flexible on tenor (6–36 months), repayment schedules, and security types
— as long as your file is clean. You’re leveraging your own capital or pledged assets.
Scenario 2: You Have No Collateral — But a Real Deal
This is where we step in. Many qualified clients don’t have fixed assets, but they do have signed contracts, payment flows, and project awards that need a bank guarantee to move forward. Here's how we price that structure.
1. Structuring Fee (Retainer)
We charge a flat fee to underwrite, prepare, and distribute your file to our issuer network. This includes:
Contract + credit review
Repayment analysis
SPV setup (if needed)
Drafting facility or issuance terms
Typical range: $7,500 to $25,000, depending on region and complexity.
2. Issuance Fee (Success-Based)
Once your file is approved, we secure a commitment from one of our partner banks or credit desks. These are priced based on the perceived risk and duration of the instrument.
Typical range: 1.5% to 5% annually
of the BG value.
3. Additional Legal or Delivery Costs
SWIFT MT-760 transmission
Legal opinion or issuer counsel
Courier, translation, or notarization (if required)
Typical range: $1,000–$5,000
depending on country of issuance and beneficiary.
Our Issuer Network (16 Banks + Institutions)
We submit structured applications to a pre-approved network of 16 issuers, including:
International:
HSBC, Standard Chartered, Barclays, UBS, Commerzbank
GCC & Africa:
Mashreq Bank, FAB, Banque Misr, Zenith Bank, Bank of Africa
LATAM:
Banorte, Banco do Brasil
U.S. & Regionals:
Private credit desks and non-bank FIs
How Pricing Is Determined
Project jurisdiction
— riskier countries = higher rates
Guarantee tenor
— longer terms = more exposure = more pricing
There’s no one-size-fits-all price tag for a bank guarantee. If you have assets and a banking line, you’ll pay lower fees. If you don’t, you’ll need a structure. But in both cases, the key is this: work with someone who actually knows how to get it done. That’s where we come in.
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using oursecure intake form, and receive a quotewithin 1-3 business days. Existing clients can connect with theirrelationship managerthrough oursecure web portal.
All submissions arepromptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500
is required upon completion of each form. This fee covers the time and effort we invest in reviewing
your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those
that carry this fee, ensuring serious applicants receive prompt attention.
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Once we receive your submission, our team will review your information to determine feasibility. If
eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ
and Procedure
pages for more information.
Disclaimer:
Financely provides financing based on due diligence and feasibility.
Approval is not guaranteed, and past performance does not predict future outcomes. All terms are
subject to review. Financely primarily assists with structuring and distribution. Qualified parties
carry out the project if the client approves the proposal.
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If you still have questions after visiting ourFAQandProcedurepages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.
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Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
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Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
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See our FAQ
and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagement may be carried out through Financely Group LLC, a non-deposit-taking non-banking financial company; Ashford Capital Advisory LLC; or another related entity. Financely and its affiliates are not registered as securities broker-dealers. When a mandate involves the purchase or sale of securities and a registered intermediary is required, all orders are introduced to and executed by a U.S. broker-dealer registered with the SEC and FINRA, acting as “chaperone” under SEC Rule 15a-6 (17 C.F.R. § 240.15a-6). Nothing here constitutes an offer, solicitation, or recommendation to buy or sell any security. Before proceeding, read our Terms of Service to confirm that engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate aligns with your legal and regulatory requirements.In the United States, we operate as anexempt foreign private adviserpursuant to the Dodd-Frank Act, subject to applicable exemptions from certain regulatory requirements. Our services and regulatory status may vary based on the location and nature of the transaction. Clickhereto download our brochure.