Bank Guarantee
Guarantee payment without having to supply an upfront deposit or bond.{sub-heading}
At a glance{yellow-border}
Why use a Bank Guarantee?{yellow-border}
A BOQ Bank Guarantee is an alternative to providing a deposit or bond. It is a written promise that BOQ will pay the nominated beneficiary on demand, up to a specified amount. Bank Guarantees enable you to grow your business by providing your suppliers, landlord, or government authorities with the security of guaranteed payment. {sub-heading}
Improve cash flow
Conserve your cash so it can be used to grow your business.
Earn interest
Use cash as security and earn interest on your BOQ term deposit.
Express application process
For fully cash-secured facilities, with a customer limit up to $250,000, a Bank Guarantee can be in your hands within 5 – 8 business days.
Limit your liability
By matching the expiry date of a Bank Guarantee to its purpose you know that the beneficiary cannot claim once your obligation has ended. This makes it easier to release your security without the need for the original Bank Guarantee to be returned.
Rates & Fees{yellow-border}
At BOQ, we keep our fees to a minimum. Any fees we do have we’ll show you upfront so there are no surprises.
Express Bank Guarantee Facilities1
- 2.95% per annum of the Bank Guarantee facility limit payable each 6 months in advance where the facility has an expiry date.
- 3.45% per annum of the Bank Guarantee facility limit payable each 6 months in advance where the facility has no expiry date.
- Automatically debited from your BOQ transaction account.
Standard Bank Guarantee Facilities2
- 2.95% per annum of the Bank Guarantee facility limit payable each 6 months in advance where the facility has an expiry date.
- 3.45% per annum of the Bank Guarantee facility limit payable each 6 months in advance where the facility has no expiry date.
- Automatically debited from your BOQ transaction account.
Ready to apply?{yellow-border}
Important information{yellow-border}
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FAQs{yellow-border}
How do I cancel a Bank Guarantee?
To cancel a Bank Guarantee:
- Contact your Relationship Manager
- Call our Business Banking team on 1300 55 72 72
- Visit your local BOQ Branch for further assistance.
To cancel/close the Bank Guarantee Facility:
- You must provide us with a request notice at least three business days before you intend to cancel the bank guarantee; and
- Either you or the Beneficiary must return the original bank guarantee to us in person to a local BOQ Branch, or
- Return the original bank guarantee and all necessary documentation via registered post addressed to BOQ Business Bank, GPO Box 898, Brisbane, QLD, 4001. Please contact us on 1300 55 72 72 to notify you have mailed your claim and to ensure we have received your request.
Once all guarantees have been cancelled you may request the release of any security held against the Bank Guarantee Facility. This is a separate process to cancelling the facility itself. Please contact us to discuss how to do this.
How do I amend a Bank Guarantee?
To amend an existing Bank Guarantee:
- contact your Relationship Manager
- call our Business Banking team on 1300 55 72 72
- visit your local BOQ Branch for further assistance. Please call ahead to schedule a suitable meeting time.
Certain amendments will require issuance of a replacement Bank Guarantee:
For example, but not limited to
- Extending the expiry date
- Reducing/increasing the amount
- Change of Beneficiary or updating Beneficiary details
Before the replacement Bank Guarantee can be handed over the original Bank Guarantee must be returned. This can happen simultaneously in-person at a BOQ Branch or another designated BOQ location with an authorised BOQ staff member.
Important Information for Beneficiaries: How to make a claim on a Bank Guarantee.
To finalise a claim on a Bank Guarantee Beneficiaries can:
- Return the original bank guarantee and all necessary documents to us in person at a local BOQ Branch. Please call ahead to schedule a suitable meeting time, or
- Return the original bank guarantee and all necessary documentation via registered post addressed to BOQ Business Bank, GPO Box 898, Brisbane, QLD, 4001. Please contact us on 1300 55 72 72 to notify you have mailed your claim and to ensure we have received your request.
Required Bank Guarantee Claim Documentation:
- A copy of the original bank guarantee to be provided initially. When Bank Cheque is drawn to payout claim and is ready to be collected by Beneficiary the original bank guarantee will need to be returned at handover.
- Bank Guarantee Claim Request Form.
- Photographic I.D. for all Beneficiaries or authorised Representative/s acting on behalf of the Beneficiary presenting at branch e.g. Driver's License or another form of photographic ID with signature.
- Beneficiary claim letter executed on company letterhead. If Beneficiary has authorised a Representative on their behalf, the individual must be specified on the letter. Note this requirement is not applicable for individual Beneficiaries e.g. only applies to non-individual entities (Company or Trust).