How to choose a business structure
A bank guarantee is a promise in writing to a third party, often a supplier or landlord, guaranteeing that a payment will be made on your behalf, by Heritage, when requested on demand. Only the beneficiary can demand the payment – the face value of the guarantee.
Establishing a bank guarantee requires security in the form of cash in deposit with Heritage, or property of a type and value deemed acceptable to the bank.
If you establish a cash secured bank guarantee, your money will be held in a term deposit as security and earn interest as per published rates. Property secured guarantees do not earn any interest.
In most cases bank guarantees are used:
There is no minimum or maximum amount, however:
|Annual Fee*||2.00% per annum or a minimum of $200 (whichever is greater)|
|Establishment Fees||Available upon application#|
|Annual Fee*||2.50% per annum or a minimum of $200 (whichever is greater)|
*Annual Fee payable annually in advance (first payment due before the bank guarantee is formally issued). Calculated on the face value of the bank guarantee and charged to your nominated Heritage Bank account.
# Establishment Fees include and may not be limited to application fee, Land Titles Office registration fees, Title Search fees and Valuation fees and will be advised upon application and confirmed in the letter of offer.