The Guarantee Undertaking types available on DOKA SaaS are,
- Bid Bond
- Performance Bond
- Warranty Bond
- Payment Guarantee(Financial/Other)
- Payment Guarantee(Goods/Services)
- Credit Card
- Credit Facilities
- Advance Payment Guarantee
- Direct Pay(Reinstatement)
- Documentary Credit
Bid bond is a bank guarantee by which a guarantor (the bank) undertakes to pay to a beneficiary certain amount of money if a tender participant (the guarantee principal) revokes its bid during the bidding process or refuses to conclude contract in accordance with conditions of the accepted tender.
A performance Bond is issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract.
A warranty bond is a legal document that guarantees to the project owner that the contractor who did the work will come back and fix defective work or material should an issue arise during the warranty period specified in the contract.
Payment guarantees are financial commitments that require the debtor to make a repayment based on the terms outlined in the original debt agreement. Sometimes, the payment guarantee is backed with some form of collateral, such as property.
A credit guarantee scheme provides third-party credit risk mitigation to lenders through the absorption of a portion of the lender's losses on the loans made to SMEs in case of default, typically in return for a fee.
An advanced payment guarantee, also known as a cash guarantee, is used when a commercial contract is issued to guarantee that payment gets made to the company that is doing the work. An advance payment guarantee also makes the promise that the payment will be returned to the buyer if the seller does not complete their contractual obligations to deliver the goods or services required.