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Letter of Guarantee

Letters of Guarantee are type of documents provided by our bank in favor of resident or non-resident natural and legal persons, and committing the delivery of a commodity or conducting a business shall be fulfilled on time in full, and addressing and favoring the real persons or institutions that our clients will be dealing with and performing for.

Features

  • May be issued in Turkish Lira or foreign currencies, for a definite or indefinite term.
  • May be performance, bid, advance or special commitment depending on the quality of the work.
  • May be issued related to purchase of goods, vendor assurance, contracts, customs, court, tax office procedures etc.

Foreign Letter of Guarantee (External Guarantee)

These are letters of guarantees, issued for non-resident addressees or institutions, undertaking that conducting a project or an obligation shall be fulfilled, in a written commitment by the bank.

In Letter of Guarantee Transactions, action which will be performed by the applicant is guaranteed by the bank. A certain amount is compensated in case of non-performance of the applicant.

Advantages

Assurance: When Letter of Guarantee is issued, Vakıf Katılım Bankası A.Ş puts its respectability and reliability into service of firms.

Cost Advantage: Our customer has the advantage of conducting a business without investment of capital and cost advantage.