Bank Guarantee
Provide certainty of guaranteed payment without an upfront deposit or bond to the beneficiary. Call now to speak to our dedicated team or enquire and we'll get back to you within 3 hours*.
Why choose Westpac
- Support from a dedicated team of bank guarantee specialists
- Competitive fees
- Easy application process
What is a bank guarantee?
It is a written promise on your behalf that a financial institution like Westpac will make a future payment to the beneficiary if they make a claim on the bank guarantee. With a bank guarantee, you don’t need to pay an upfront deposit to the beneficiary for things like a rental or retention bond.
Benefits
Earn interest on cash security
Your cash security earns interest because it is held as a term deposit.
Flexible terms
Choose an amount and expiry date that aligns with your needs. Minimum $5,000 applies for cash-secured bank guarantees.
Dedicated support team
Save time with a specialist service team that will guide you through the end-to-end application process
How a bank guarantee can help your business grow
From reimbursing buyers to renting workspaces, learn how a bank guarantee helps support all kinds of businesses – including creative work.
Rates and fees
Fees for cash-secured bank guarantees up to $1,500,000
Service fee |
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| Expiry 5 years or less: | $200 p.a. or 2.50% p.a. of the guaranteed amount (whichever is greater)# |
| Expiry more than 5 years or no expiry: | $250 p.a. or 3.00% p.a. of the guaranteed amount (whichever is greater)# |
| Service fees are charged half-yearly in advance. | |
Establishment fee |
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$250 for cash-secured bank guarantees# Contact us about fees for bank guarantees over $1,500,000 secured using cash or other assets. |
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Eligibility criteria
You and the beneficiary must be a tax resident of Australia and are one of the following:
- A business
- A government entity
- An individual
A not-for-profit organisation
The bank guarantee must be:
- used for business purposes
issued in Australian dollars
How to apply
1. Contact us to discuss your requirements
- Contact your Relationship Manager (if applicable)
- Request a callback or contact our Bank Guarantee Specialist team on 1300 136 345
2. Information we will require:
- How you would like to secure your bank guarantee - either with a term deposit (cash-backed) or an eligible form of non-cash security. We can help you understand your options
- Beneficiary’s legal name (and the ABN or ACN if the beneficiary is a business)
- Beneficiary’s address (no PO boxes)
- Bank guarantee purpose
- The amount for the bank guarantee (minimum $5,000 for cash-secured bank guarantees)
- The expiry date for the bank guarantee (if there is one)
We’ll need to verify your identity before we can issue the bank guarantee.
3. Collect your bank guarantee from a branch (bank guarantees are only issued in paper form).
Frequently asked questions
Bank guarantees can only be used for business purposes. The purpose should specify what the bank guarantee is for. Examples include:
- Security deposit bond: A deposit or bond for contractual obligations related to the business e.g. Suite 1, Level 1, ABC street, Sydney NSW 2000
- Lease/rental bond: A rental bond for a commercial lease e.g. Lot 1 Unit 1, ABC St, Sydney NSW 2000
- Contract performance guarantee: A bond to a business supplier for the delivery of goods or services e.g. Project Terex Valley Subcontract no. WQX114
- Retention bond: Retentions being withheld under construction contracts e.g. retention for construction works at A04 utility room project SOW-C884.
For cash-secured bank guarantees up to $1,500,000, it will take at least 1 to 3 business days from the day you’ve signed an agreement with us and your term deposit is ready. For other types of security or bank guarantee amounts, contact us to discuss the time required.
The expiry of a bank guarantee is typically aligned with the date when your contractual obligations to the beneficiary finishes. Once the bank guarantee expires, you’ll no longer be charged a service fee and the beneficiary can’t make a claim on the bank guarantee. There may be circumstances where you may prefer to have an expiry date that exceeds the contract end date. For example, some people may add an extra 3 to 6 months to the expiry date of bank guarantees for commercial leases to cater for business uncertainties. You can also extend the expiry date in future if your contract extends beyond the original date.
For a bank guarantee that doesn’t expire, you’ll continue to pay the service fee and your security can’t be released unless the original bank guarantee is returned to us for cancellation. Additionally, a bank guarantee with no expiry could allow the beneficiary to make a claim after your contract ends. If this happens, we’ll be required to use your security to pay the beneficiary.
Only a beneficiary can make a claim. To do so, they must visit a branch and submit:
- the original bank guarantee, which will be exchanged for a bank cheque
- a completed Bank Guarantee Demand Claim Form (PDF 660KB)
If the original bank guarantee is lost or misplaced, the beneficiary must contact us to discuss the next steps.
Yes, they can be cancelled if one of the following occurs:
- the bank guarantee has expired
- Westpac pays the full amount of the bank guarantee to the beneficiary
- the beneficiary no longer requires the bank guarantee.
You must return the original bank guarantee to a branch. If it is lost or misplaced, the beneficiary must contact us to discuss the next steps.
For cash-secured bank guarantees, your term deposit will continue to earn interest until it matures unless you’ve given us instructions to cancel and release it. The instructions must be provided a minimum of 31 business days before the maturity date. An interest rate reduction may apply if the term deposit is terminated early – refer to the Term Deposits Terms and Conditions (PDF 447KB) for more information.
To release a non‑cash security, contact your Relationship Manager (if applicable), call 1300 136 345, or Visit a branch to discuss your options.
A bank guarantee may be secured using:
- Cash held in a term deposit with us.
- Eligible assets and property, subject to assessment and approval.
Contact us to discuss your options.
Yes, they can. To discuss the updates:
- Contact your Relationship Manager (if applicable)
- Contact our Bank Guarantee Specialist team on 1300 136 345
- Visit your local branch.
Find out more
Visit our About bank guarantees page for more information.
Things you should know
Credit criteria, fees, charges, terms and conditions apply. Talk to your banker for more details.
*We’ll typically get back to you within 3 hours during weekday business hours.
#Quoted fees are only applicable to cash-secured bank guarantees up to $1,500,000.