Contract guarantees & execution loans
Why
Responding to a tender, obtaining an advance, or financing project expenditure may require a suitable banking product. Banking Connect helps the company identify the documents to gather and prepare its request. A bid bond accompanies a bid; a guarantee after award addresses an obligation under the contract; a loan provides financing. Each product serves a specific need, and its terms belong to the institution offering it.
How, in the application
| Product | Stage and need to document |
|---|---|
| Bid bond | Before award, when required by the tender documents. Preparation can start from the notice and bid application, without waiting for an award or creating an invoice. |
| Performance bond | After award, for the performance obligation described in the contract. The file links the contract and the evidence requested by the bank. |
| Advance payment guarantee | For the advance provided for in the contract and the corresponding repayment obligations. The guarantee is not the payment of that advance. |
| Retention bond | For a proposed substitution for retention under the contract's terms. Preparing it proves neither the buyer's agreement nor the release of the retention. |
| Contract prefinancing loan | For working capital needs in preparation for execution, based on the contract file required by the product. It remains distinct from the bid bond. |
| Contract execution loan | For expenditure incurred in delivering the contract. The contract, financing need, and financial information must be documented according to the selected product. |
Within a bid application, a guarantee requirement can open a draft banking request. After award, performance, advance payment, and retention guarantees can be prepared from a won application when a contract is linked to it. Other requests are prepared in the banking workspace with the product and contract context. The guarantee amount, contract amount, and loan amount must be entered separately.
The catalog displays the documents and criteria configured for the product, including country, currency, amount limits, tenor, and, where required, the signed contract. An award does not automatically satisfy those requirements. An invoice or inventory financing retains its specialist journey; it does not become a guarantee because it appears in the same commercial file.
Safeguards
- Tauraco prepares and tracks the request; the bank decides, sets the terms, and issues its instrument. The platform does not lend or act as guarantor.
- A product's presence in the catalog establishes neither applicant eligibility nor an institution's actual authorization for that country and product.
- A released or expired guarantee must not be treated as an available guarantee satisfying a new requirement.