Bank Guarantee Cost: What You’ll Actually Pay to Get One Issued

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
• Structure strength — liquidity, repayment plan, enforceability
• Creditworthiness of your counterparty(not just you)

What to Avoid

• Advance-fee scams promising 100% issuance with no questions asked
• Unverifiable “providers” with no real SWIFT access or issuer relationships
• Leased guarantees — rarely accepted by banks or project beneficiaries

Final Word

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.