Guarantee glossary

A guarantee is a good way of providing security for your company when you do business abroad. It also strengthens your position when trying to win an international order or assignment. Some terms and expressions used may not be immediately familiar if you have not used guarantees before.

You can find an explanation of terms and expressions relating to guarantees in our glossary.

 

Glossary

Guarantee term Explanation
Advance payment guarantee  Advance guarantee – See Types of guarantee 
Advise Pass on information about the guarantee to the beneficiary (person who receives the guarantee) of another bank, without liability
Applicant Person requesting the guarantee
Avalise Guarantee payment of a draft or bill of exchange, ie, act as guarantor for the party accepting the draft or bill. Sometimes used instead of a payment guarantee
Beneficiary The party in whose favour the guarantee is issued
Bid bond See Types of guarantee 
Conditional guarantee The bank awaits agreement between the parties or a judicial decision before paying
Counter-guarantee When Danske Bank asks a correspondent bank to issue a guarantee, the correspondent bank will demand a counter-guarantee from Danske Bank as security
Demand guarantee Claims under the guarantee are paid against a simple declaration of default

Want to know more?

Documentary credit glossary

If you are interested in documentary credit terminology, see the documentary credit glossary.

See glossary
Collection glossary

If you are interested in collection terminology, see the collection glossary.

See glossary
Contact
0345 850 9515

Contact us

Customer information Useful numbers Book Appointment Become a customer

Chat with us

Customer Support

Find out more

Find a business Centre