Payment Guarantees for Green Transition
Payment Guarantees secure the timely payment of an entrepreneur's liabilities towards its suppliers, both in Poland and abroad. An entrepreneur may also secure the repayment of its liabilities to banks and factors financing invoices issued by entrepreneur’s suppliers.
Supplier Payment Guarantee
Gwarancja zabezpiecza spłatę zobowiązań przedsiębiorcy wobec jego dostawców zarówno krajowych jak i zagranicznych. Przedsiębiorca dokonując zakupu dostaw lub usług może dzięki gwarancji KUKE uzyskać korzystniejsze warunki płatności, w szczególności odroczenie płatności (kredyt kupiecki), od swojego dostawcy i zabezpieczyć płatność w wysokości 80 proc. swojego zobowiązania gwarancją KUKE.
What are the benefits for the entrepreneur?
Better financing terms
A Supplier Payment Guarantee enables the entrepreneur to obtain extended payment terms, improves the entrepreneur's cash flow and increases his liquidity to fulfill new orders.
Guaranteed payment
The entrepreneur's supplier is guaranteed to receive payment for the components or materials delivered to the entrepreneur.
Negotiating leverage
The entrepreneur gains an excellent tool to negotiate deliveries on better financial terms with partners from all over the world, including Poland.
Security for the bank
If a foreign supplier prefers a guarantee from a well-known local bank, KUKE may counter guarantee such transactions, securing the entrepreneur's payment obligations.
Supply Chain Finance Guarantee
A Supply Chain Finance Guarantee secures entrepreneur's payment obligations towards financial entities, mainly factoring companies, purchasing accounts receivables from companies supplying goods and services to the entrepreneur. KUKE bears a large portion of the risk incurred by the financial institution (factor), allowing it to safely finance greater volume of transactions.
What are the benefits for the entrepreneur?
The guarantee improves entrepreneur's cash flow and increases his liquidity to fulfill new orders by benefiting from extended payment terms (e.g. the invoice with a payment term of 14 days issued by a supplier is purchased by the factoring company, allowing the entrepreneur to settle accounts with the factoring company in 60 days).
Guarantees
We share the risk with the bank issuing guarantees to the business. We provide counter-guarantees to secure the obligations of the bank issuing guarantees that cover the business’s liabilities to a foreign counterparty. A counter-guarantee may relate to either a single contract or the entire guarantee facility granted to the business.
Working Capital Loan Repayment Guarantee
This guarantee secures the timely repayment of a working capital loan granted to an entrepreneur for their ongoing operations. In the event the entrepreneur fails to repay part or all of the loan, along with interest, fees, and other amounts due under the agreement with the financial institution, the guarantee comes into effect.
For whom?
For entrepreneurs applying for a working capital loan or other revolving financial obligations at a bank.
What are the benefits for the entrepreneur and the bank/financial institution?
Support for day-to-day operations
The entrepreneur gains access to financing for their day-to-day operations.
A better chance of securing funding
In dealings with the bank, the entrepreneur can significantly increase the available financing amount — KUKE guarantees reduce the entrepreneur's use of their bank limit by 80%.
A higher credit limit
The bank can increase its commitment to financing the entrepreneur by up to five times.
Guarantee for other financial institutionsS
In dealings with a financial institution other than a bank, the entrepreneur has the opportunity to take on a financial obligation other than a typical loan, and the financial institution receives a reliable guarantee of the entrepreneur's repayment.
Do you have trouble selecting the right solution for your business? Contact us!
Our consultant will help you choose the right package of solutions to support your company's foreign expansion.
What are the terms of cooperation?
- The loan granted by the bank or other financial obligation taken on by the entrepreneur must be related to the entrepreneur's ongoing and revolving activities. The guarantee is issued at the entrepreneur's request in favor of the financing bank or other financial institution.
- Cooperation is based on a limit or on individual terms.
- The limit is set for a period of one year, during which guarantees can be issued. The validity of the limit can be extended for additional one-year periods.
- If the entrepreneur does not meet the limit criteria, they may obtain a guarantee on individual terms to secure financing and supplies for a specific transaction.
- The guarantee covers up to 80% of the entrepreneur's obligations.
Do you have questions?
Please contact us
Krzysztof Kwaterski
+48 603 132 660
Kinga Zychowicz
+48 605 251 057