Question 1

What is a financial guarantee?

Accepted Answer

A financial guarantee is a written undertaking in which Amorin guarantees payment or performance to a beneficiary if the applicant fails to meet a specific contractual or financial obligation. It provides security without requiring the applicant to tie up cash as collateral.

Question 2

What is the difference between a bid bond and a performance bond?

Accepted Answer

A bid bond secures your commitment to honour a tender if awarded, submitted alongside your bid. A performance bond secures your delivery of the actual contract once it has been awarded, typically 5 to 10 percent of contract value.

Question 3

Are your guarantees recognised by government and public entities?

Accepted Answer

Yes. Our guarantees are structured to meet the wording and format requirements of public procurement in Kenya, as well as private sector and international counterparties.

Question 4

Do you support cross-border transactions?

Accepted Answer

Yes. Instruments such as Standby Letters of Credit and bank guarantees are structured to be recognised by international banks and trading partners across East Africa and beyond.

Question 5

How do I apply for a guarantee?

Accepted Answer

Submit a request through our online form or contact our team directly with your contract or tender documents. We will guide you through the consultation, assessment, and structuring stages that follow.

Question 6

What documents do I need to provide?

Accepted Answer

Typically your certificate of incorporation, the relevant contract or tender document, and financial statements. Exact requirements vary by facility type and size, and our team will confirm what is needed for your specific request.

Question 7

How long does issuance take?

Accepted Answer

Most facilities are processed within days rather than weeks once documentation is complete, though timelines depend on the complexity and value of the guarantee required.

Question 8

Can I apply for multiple guarantees at once?

Accepted Answer

Yes. Many of our clients hold a standing facility that allows multiple bid bonds or guarantees to be issued quickly across concurrent tenders and contracts.

Question 9

How much does a guarantee cost?

Accepted Answer

Pricing depends on the guarantee type, value, tenor, and your company's risk profile. We provide a clear, itemised quotation before any facility is issued, with no hidden charges.

Question 10

Do you require collateral?

Accepted Answer

Collateral requirements depend on the size and structure of the facility. Where possible, we structure guarantees to minimise the need for cash security, preserving your working capital.

Question 11

Are there renewal or extension fees?

Accepted Answer

Where a guarantee needs to be extended beyond its original validity period, a renewal fee applies, calculated on the same basis as the original facility.

Question 12

What happens when my guarantee expires?

Accepted Answer

A guarantee simply lapses at the end of its validity period once the underlying obligation has been satisfactorily discharged, with no further action required unless a renewal is needed.

Question 13

Can a guarantee be amended after issuance?

Accepted Answer

Yes, amendments such as extending validity or adjusting the guaranteed amount can be made where the underlying contract changes, subject to review and agreement of updated terms.

Question 14

What happens if a claim is made against my guarantee?

Accepted Answer

We notify you immediately and review the claim against the guarantee's terms and the underlying contract. Our team supports you through the process to resolve valid claims fairly and efficiently.

Question 15

Who do I contact for support after a guarantee is issued?

Accepted Answer

Your dedicated client relationship contact remains your point of contact for the life of the facility, including amendments, renewals, and any claims support you may need.

Answers to common guarantee questions

About Guarantees

Application Process

Costs & Fees

Claims & Support

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