Reducing the risk of nonpayment
The danger of failure or unwillingness of one or more partners to fulfill their obligations on a local or international level is a risk that no company should take. Let us ensure that your company is protected from financial losses with a Letter of Guarantee.
- Reduce financial risks
- Globally accepted
- Guaranteed payment
Letters of Guarantee can be in the form of Bank Guarantees, Performance Bonds, Bid Bonds, Shipping Guarantees or Standby Letter of Credit.
Features and Benefits
A Letter of guarantee is an undertaking by Al Rajhi Bank on behalf of its customer to pay a certain sum of money to a beneficiary in case of default by the applicant in meeting certain terms and conditions of an agreement and contract. Al Rajhi Bank issues or advises all types of letters of guarantee, which comply with international standard, local regulations and the bank’s principles.
- Secure customers entering into bids, sales contracts, and tenders.
- Ability to track outstanding payments and orders easily.
- Fulfillment of contracts with counterparts, based on the guarantee terms.
Al Rajhi Bank issues, advises, amends, extends, and liquidates, all based on customer requests.
How to Apply
Am I Eligible
Here are the things that we’ll need from you…
Eligibility & Criteria
- Small businesses, establishments, Limited liability companies (LLC) and private companies
- Commercial account with Al Rajhi Bank
- Service Agreement
Letter of Guarantee
How long does it take to process Letter of Guarantee?We can process your letter of Guarantee within 24 hours upon receipt of a complete application, subject to the availability of your credit facility.
Can I issue in a special text other than the bank-approved texts?Yes, we can issue letters of guarantees in special text but it is subject to shariah, legal and risk approvals.
How do I cancel shipping Guarantee?Please return the original Shipping Guarantee to Al Rajhi Bank for cancellation.