Guarantees
Guarantees are usually written undertakings by FNB Botswana to pay an agreed amount to a third party if you default on the terms of your contract with that party.
What this is
A written undertaking
Guarantees provide security for performance and reduce risk.
They are written undertakings by the bank to pay an agreed amount to a third party if you default on the terms of your contract with that party.
How it works
- Guarantees are used to back up performance by an importer or a contractor.
- There are many types of guarantees that fulfil different functions.
What it costs
Know what to expect
- The main cost under a guarantee is the establishment fee, usually a half-yearly percentage risk fee based on the risk profile of the applicant which is usually charged in advance.
