Guarantee glossary

An international 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

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Documentary credit glossary Box9 content If you are interested in documentary credit terminology, see the documentary credit glossary. See glossary	Collection glossary Box10 content If you are interested in collection terminology, see the collection glossary. See glossary