What is a bank guarantee?
A bank guarantee is a widely used form of security for commercial leases and other commercial agreements, such as construction and building projects. Bank guarantees are an alternative to providing a cash deposit or bond to a landlord or a commercial counterparty (beneficiary). Bank guarantees are an unconditional undertaking provided by a bank such as Avenue, on behalf of its customer, to pay a beneficiary the amount guaranteed.
How fast can I get an Avenue bank guarantee?
Avenue is an Australian Bank and licenced ADI that specialises in providing bank guarantees for all Australian businesses. Avenue makes obtaining a bank guarantee fast and simple with a fully digital process.
With Avenue you don’t need to visit a branch or provide mountains of paperwork.
This means that we can provide you with a bank guarantee in as little as 24 hours. If you are ready to apply and get an approval within minutes click below:
Get the green-light faster so you can lease the premises your business needs or to secure that commercial agreement.
Our bank guarantees are 100% cash backed, so if you need a bank guarantee for $100,000, you’ll need to deposit $100,000 with Avenue as a security deposit. Our bank guarantees are available for all commercial leases (office, industrial, retail and more), or to secure commercial agreements such as performance or retention guarantees and strata bonds.
Avenue’s bank guarantee is designed to be simple and secure and we believe that in the 21st century, a business bank should offer digitally enabled products that make things faster, fairer, and fuss-free for you.
How much does an Avenue Bank Guarantee cost?
Avenue pays you a competitive interest rate of up to 5.25% per annum on your security deposit.
Avenue Bank Guarantees have no upfront fees. An ongoing service fee of 2.95% per annum is charged monthly in arrears.
Do bank guarantees have an expiry date?
The expiry date of a bank guarantee is agreed between you and the beneficiary and normally aligns with the date of the underlying contractual obligation. Avenue’s bank guarantees can be issued with or without an expiry date.
Your security deposit cannot be released until your bank guarantee is no longer required and cancelled. Service fees will continue to be charged until the bank guarantee is cancelled, however you will continue to earn interest on your security deposit.
