Payment

Methods
for International Trade
UF1 – SIMPLE PAYMENT METHODS

Teachers: Josemi Castelló & Raquel Lendines

UF 1 - PART 4
 GUARANTEES
(Garantíes: Aval i Fiança)
A guarantee is a Document issued by a ‘Guarantor’ who undertakes to complete a contractual
dutys. The guarantor will pay the ‘Beneficiary’ a sum of money if the principal debtor fails
his/her/its responsibility.

- Applicant (principal, obligor) Person who needs to guarantee a duty or debt.

- Guarantor (issuer, most of times this is a Person who issues a guarantee. This person
Bank, then it’s called Bank Guarantee) will have to pay in case the principal debtor
fails.

- Beneficiary (creditor) Person who will collect the money: First from
the main debtor buy if he/she/it fails, the
guarantor will pay the Beneficiary
 GUARANTEES
(Garantíes: Aval i Fiança)
 GUARANTEES
(Garantíes: Aval i Fiança)
1. Aval ( Guarantee) Solidary responsibility. The guarantor, will pay the total amount. If there
are more than one guarantor, every one of then is obligated to pay the
Total amount.
2. Fiança ( Bond) Similar to Guarantee (Aval) but the guarantor in a Bond has 3 rights:

1. Order right: The beneficiary MUST claim the amount to the main
debtor first. Then, after a default, the guarantor will pay.

2. Exclusion right: The beneficiary MUST end all options for collecting
to main debtor by: Seizure of assets (embargament de bens) or
Auction ( subhasta dels bens)
3. Division right: The guarantor in a Bond can only by obligated to pay
a part of the total amount if there are more than one guarantors.
 DEFAULTS MANAGEMENT
(Gestió d’Impagats)
DEFAULT / PAYMENT DEFAULT (Impagament)

It happens when a person, company, etc. defaults on something that they have
legally agreed to do, such as paying some money or doing a piece of work before a
particular time, they fail to do it. This fact is called Dafault or Payment Default.
 DEFAULTS MANAGEMENT
(Gestió d’Impagats)
What to do in case of a Default ?

Obviously, we have to claim for the payment. But…. We need to own the correct
DOCUMENTATION:

1. Contract (Sales Contract)

2. Order ( Signed Order )
3. Delivery Note (Albará o Nota d’Entrega)
4. Invoice (Factura)

So it’s very recommendable to collect all the documents BEFORE making the transaction.
 DEFAULTS MANAGEMENT
(Gestió d’Impagats)
COSTS OF A DEFAULT CLAIMING

The creditor, has a right to claim for :

- Danys i perjudicis Cost / Damages Costs

- Cost Financer / Financial Costs
- Costos Judicials / Judicial Process Costs
Payment
Methods
for International Trade
UF1 – SIMPLE PAYMENT METHODS
(part 4)

Teachers: Josemi Castelló & Raquel Lendines