Increase your commercial reliability, business volume, and profitability with Kuveyt Türk's Letters of Guarantee!
What Is a Letter of Guarantee?
A Letter of Guarantee is a formal commitment in favor of real and legal Kuveyt Türk customers residing in or out of Turkey. This commitment is directed to the recipient institution and relates to various matters, such as the delivery of goods, the completion of work, or the payment of a debt.
How to Apply for a Letter of Guarantee?
Apply via Kuveyt Türk Mobile
- Log in to Kuveyt Türk Mobile and click on the Applications menu,
- Select Letter of Guarantee Application under the menu and enter the required information,
- You can track the status of your application via the Guarantee Application Tracking under the Letter of Guarantee menu,
- After your application is approved, the online guarantee letter will be delivered instantaneously. You can receive the physical letter from the Kuveyt Türk branch of your choice.
Apply via Kuveyt Türk Internet Branch
- Log in to Kuveyt Türk Internet Branch,
- Click on Letters of Guarantee from the Applications menu,
- Click on the Letter of Guarantee Application option from the drop-down menu and enter the requested information,
- You can find out the status of the Letter of Guarantee you have applied for via the Guarantee Application Tracking option under the Letter of Guarantee menu,
- Once your application has been approved, you can pick up your letter at the branch of your choice.
Letter of Guarantee Features
- You can request the Letter of Guarantee to be issued in TRY or a foreign currency, for a specific period or indefinitely.
- Depending on the nature of your business, the Letter of Guarantee may be definitive, provisional, advance, or special.
- The subject of the Letter of Guarantee may be related to the purchase of goods, dealership collateral, contracting works, customs, court, and tax office procedures in line with your request.
Advantages of Letter of Guarantee
- Letters of Guarantee secure the commercial relationship between the parties under Kuveyt Türk's guarantee,
- As a Kuveyt Türk customer, you benefit from the chance to conduct business without the need for capital,
- Kuveyt Türk meets your working capital needs through a letter of purchase for dealers,
- With the advance letter, you can have support in pre-financing your large investment projects,
- Once you have beneficiary status, you can get a job with payment commitment support,
- When you are a counterparty, you can be assured of compensation in the event of non-fulfillment of a commitment or performance.
Forms of Letters of Guarantee
Domestic Letters of Guarantee
- Letters Organized under the 2886 State Tender Law
- Letters Organized under the 4734 Public Procurement Law
- Letters for Private sector tenders
- Letters with Special Subject
- Letters for courts
- Customs Letter
- Letters for tax offices
External Guarantees
- Tender Guarantee
- Performance Guarantee
- Advance Payment Guarantee
- Retention Money Guarantee
- Warranty Guarantee
- Payment Guarantee
- Standby Letter of Credit
- Letters of Guarantee for foreign loan transactions
Letters of Guarantee by Limit Type
- In-limit letter of guarantee
- Out-of-limit letter of guarantee
Electronic Letter of Guarantee
- You can obtain your written commitments from Kuveyt Türk for public and private institutions included in the system via the Electronic Letter of Guarantee Platform.
- Processes, such as issuance, delivery, return, update, and indemnification, are carried out digitally in Electronic Letters of Guarantee.
- The digital realization of the processes prevents the risks of counterfeit letters of guarantee. Moreover, it accelerates workflows and provides efficiency advantages while reducing the use of paper.
- Electronic Letters of Guarantee eliminate the cost of physical archiving.
With online solutions provided by Kuveyt Türk, save time when applying for the Letter of Guarantee!
Frequently Asked Questions
What are the general definitions of Letter of Guarantee types?
- A Letter of Provisional Guarantee is issued to ensure participation in public and government tenders. If the tender is won, it guarantees the beneficiary's acts of giving a performance bond and signing the contract.The Performance Bond guarantees that the beneficiary will fulfill its commitment to the addressee administration in accordance with the provisions of the contract and specifications. It is issued as a substitute for the amount of performance bond required to be deposited.
- In public or private sector tenders, the Advance Letter of Guarantee ensures that the bank guarantees the amount of the advance payment received to start the work. The advance is recovered by offsetting against progress payments as the contractor fulfills its commitments in accordance with the provisions of the contract.
What is an In-Limit Letter of Guarantee?
- It is a written commitment given by the bank for the works specified in the law, addressed to the state institutions listed in the State Procurement Law.
What is an Out-of-Limit Letter of Guarantee?
- These are letters issued for works that are not subject to official authorities. In such letters, the guaranteed amounts can be issued out of the limit.
What advantages do Kuveyt Türk Online Application and Delivery services provide?
- Thanks to the online application, you can quickly submit Letter of Guarantee requests to our bank via Kuveyt Türk Mobile and Internet Branch,
- In addition to the online application, you can also benefit from online delivery for your e-tender, tax refund, and Customs Letter transactions,
- You can submit your request from your office or home without visiting a branch. Thus, you can save time and perform environmentally friendly transactions with a paper-free banking experience.