How does it work?
Guarantors will look at the
following parameters:
The
technical risk
Guarantors will generally only cover certain activities. Generally
speaking, guarantors do not do financial guarantees which might
be called with reference to any no performance of activity.
Legal
risk
The guarantor will examine closely the wording of the contract
and may ask for amendments and or corrections. Guarantors are
moreover attentive to the zone covered by the guarantee (for instance
exports to countries with limited judicial recourse).
Financial
risk
The guarantor will, like all other financial institutions, inspect
the financial health of the applicant. It will decide upon a maximum
coverage (generally equivalent to the applicant’s equity).
In the event of large sums needing guarantees, multiple guarantors
are advised.