Letters of guarantee II: application practice

Letter of guarantee: requirements

The legislation does not establish requirements for the execution and use of letters of guarantee. However, preparers must adhere to accepted business rules. In particular, the document assumes a structure with elements such as:

• Sender's details - name and address of the organization, telephone and email address for communication, registration number or passport details of an individual;
• text of the letter - a statement of the essence of the appeal, indicating the conditions, terms and other factors that are important for the fulfillment of obligations;
• sender's signature;
• date of signing.

Letter of guarantee to the Social Insurance Fund regarding payment of benefits

The addressee is the manager of the local branch of the Social Insurance Fund. At the beginning, the details of the LLC or individual entrepreneur must be provided: name, registration and TIN numbers, legal address. The paper indicates the office number with the date of writing.

In the main part, it is guaranteed to fully pay the benefits accrued for a certain period within the legal deadlines. They also declare their readiness to accept liability provided for by law in the event of a violation of obligations.

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The text is signed by those responsible for social insurance - the head of the enterprise and the chief accountant.

Features of letters of guarantee

When drawing up a letter of guarantee, they are guided by the rules of business correspondence. So, the text should be written in an official business style, which is different:

• concise and understandable wording;
• absence of colloquial, emotionally charged, slang expressions;
• absence of errors, typos and corrections.

NOTE . In business correspondence, it is customary to begin the text by addressing the addressee with the word “Dear.” An important feature of a letter of guarantee is that it does not always have legal force. This fact must be taken into account when drawing up the letter itself and other documents related to it, as well as if it is necessary to provide information for legal proceedings.

Recommendations for compilation

Under current legislation, there are no strict rules for filling out a letter of guarantee. But besides them, there are unspoken recommendations on document flow. If you draw up a document in accordance with these rules, there will be no ambiguity in the wording, and there will be no ambiguities when reading the content.

General recommendations for creating content:

• It is necessary to justify the reason for the delay in payment, and as a result, the formation of debt. If these are third-party circumstances, supporting documents are attached.
• Precisely describe the proposed debt repayment schedule, taking into account the difference with the original plan specified in the contract.
• Indicate the clauses of the contract that are violated as a result of delay.
• It is recommended to use references to regulatory documents if the content of the agreement falls within their scope.
• The presentation of thoughts is brief, using business terms and formulations. Jargon and similar phrases are not allowed.

If you follow these recommendations, the content of the letter of guarantee will comply with current standards of business correspondence.

Sample letter of guarantee for payment of debt

For specifics, you need to familiarize yourself with the sample document. Its content will vary on a case-by-case basis. Within the framework of one agreement, several letters of guarantee for payment of debt can be drawn up, with differences in wording depending on the circumstances and factors.

A typical sample should contain the following sections:

• Destination. It indicates the full name of the creditor and his address. For the organization, you need to specify the manager to whom the letter is sent - full name and position.
• Compiled by This can only be a private or legal entity with whom the agreement is concluded. Third parties do not have the right to draw up such documents.
• Main content. Here it should be indicated that the creditee undertakes to repay the generated debt within the framework of the current agreement. The exact amount is indicated. Additionally, you can schedule an exact payment schedule.
• Penalties. This item is not mandatory, but recommended. It specifies the amount of the accrued penalty to the total amount if the applicant does not fulfill his obligations.
• Signature of the responsible person, his full name and date of application.

After checking the contents, the document is sent to the lender. It is important that a responsible manager or employee with the appropriate level of authority familiarizes himself with it. Most often, this is the chief accountant of the organization.

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How to write the text correctly

Often the problem in rejecting a letter of guarantee is incorrect or ambiguous wording. Therefore, they often resort to the services of professional lawyers or hired accountants to compile it. This is relevant if the terms of the payment agreement were violated for the first time. For regular partners, the letter is only of a guarantee nature - a brief content is allowed.

To draw up an application, the text must contain one of the following expressions and phrases:

• We guarantee full and timely payment. Used to confirm obligations and the date (schedule) of debt repayment.
• Due to the unfavorable economic situation (circumstances). The reasons for deferring payments are specified.
• Due to special circumstances. Indicates force majeure. In this case, the details need not be deciphered. But it all depends on the degree of trust between partners.

The circumstances of the delay should be explained as simply as possible, but at the same time in detail. The lender should have no doubts about compliance with previously accepted agreements. If additional documents are attached to the application, you must refer to them in the content. This could be statements from the company’s accounts, information about the occurrence of force majeure circumstances.

Letter with payment schedule

If the amount of debt is large or the terms of the agreement imply payment in several stages, a payment schedule is drawn up. It is attached to the letter of guarantee and is the basis of the creditee’s intentions to repay the debt. When preparing an application with a payment schedule, you should carefully analyze the possibility of depositing the required amounts on the specified dates.

The following factors must be considered when creating a schedule:

• The chart is a separate application. There should be a link to it in the main text of the document.
• The date of generation and sending of the payment is indicated. It may differ from the time of receipt of funds in the lender's current account. The difference is from 3 hours to several days.
• Take into account mandatory repayment compliance. The required amount must be prepared in advance so that a new delay does not form.
• The purpose of payment includes the contract number and the phrase “By letter of guarantee.” Payment of penalties can be made separately or taken into account in the total amount. This should also be indicated in the purpose of payment.

Additionally, you can enter the bank details of the account from which funds will be received. It is important that the lender sees payment on time, the time of receipt of which corresponds to the previously received letter of guarantee and schedule.

Types of letters of guarantee

Letters of guarantee have different functionality, which depends on the type of document and its purpose. There are several types of letters of guarantee, and we’ll talk about each of them in more detail:

1. Letter of guarantee for payment. The type of document in question confirms the obligation to pay funds. For example, for goods, services, performing various works, or simply as a guarantee of the return of borrowed money. The payment guarantee letter confirms the fact of debt recognition. This is especially true if the buyer does not yet have the opportunity to pay for the purchase, but he undertakes to do so in the near future.
2. Letter of guarantee for a product, service or work. The document in question confirms that the product or service must be transferred within the specified period. If the contract requires it, several time periods can be allocated during which the promised work will be completed. Also, a letter of guarantee for a product is drawn up immediately before concluding a transaction or if there are prerequisites for violations.
3. Letter of guarantee for the provision of the address. With the help of the document in question, the landlord guarantees that he will provide a legal address. It may be needed in contacts with the tax office if the organization does not have its own legal address. Typically, legal entities rent premises, and then the landlord must provide a letter of guarantee for the address. The document in question is shown to tax officials so that they do not have questions about the legality of the company’s activities.
4. Letter of guarantee for employment. Used to confirm future employment. This document is required if employment is of primary importance. In particular, a letter of guarantee for employment can be requested under the following circumstances:

• For transfer to a university, if you need to bring a certificate of official employment to the educational institution to receive a diploma;
• If the employee is a foreigner and needs to bring a document to the migration service;
• In situations where a prisoner gets a job after release, he needs to periodically report to the relevant supervisory authorities.

Compilation

The standard form includes a certain set of details:

• date of formation and documentation number;
• name of the company that is the addressee - indicate the full name of the company and the full name of the person acting as the recipient (practice shows that letters are written in the name of the head of the company);
• title of the document – ​​it is not necessary to write the title; it is possible to indicate the current topic of the appeal;
• main text - a list of obligations of the parties and deadlines for fulfilling requirements are indicated;
• signature – the position and the present signature of the originator are indicated.

Sample letter of guarantee

In the main part of the text, the sender indicates valid bank details, links to previously concluded agreements, the amount of penalties for violation of regulated obligations, and so on. The letter is written on one sheet of paper. The style is official.

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The document is signed by the director of the institution and the chief accountant. There are often cases when the form prescribes sanctions that will be applied after violating the previously prescribed procedure.

Warranty documents consist of the following parts:

Initial. In the upper right part, information about both the sender and the recipient is written down. On the left side is the outgoing number and date of compilation. Large companies prepare similar documentation on special forms. In addition to the name of the organization, the names of persons on the board of directors of the companies on both sides are indicated.

Letter of guarantee confirming payment for the goods. Form

Main. The essence of the guarantee provision is stated. Two spelling options are allowed. In the first case, the sender begins the drafting with the words: “This letter is guaranteed,” after which a list of guarantees, terms and other mandatory conditions of execution is provided.

In the second case, all the details are described, and at the end the following rule is added: “Compliance with the conditions is guaranteed.” It is allowed to create derivatives of the word “guarantee” - the meaning of the message does not change.

In some situations, the document is a direct addition to the written agreement. This is especially true in cases where one of the parties does not show confidence in the integrity of their partner.

Sample letter for payment of debt

Final. The signature of the head of the company and the organizational seal are affixed to the main text. Under no circumstances can a letter act as a contract of guarantee. The document is sent in favor of the counterparty by post.

The current judicial practice does not give a clear idea of ​​the status of the letter. It can be considered as a binding document, but in the vast majority of cases the document does not entail the same legal consequences as a classic contract.

About payment and performance of work

The guarantee document on payment for goods indicates the facts that the sender guarantees for full payment or reimbursement of expenses exactly within the specified time frame. The parties to the transaction should describe in detail the amount of payment in digital terms and in words.

It is necessary to include a clause about bank details and the address of the sending company. In addition to the signature of the manager, the signature of the head of the financial department/department must be reflected on the paper.

Example of a letter of guarantee for the completion of work

Senders confirm the seriousness of their intentions by including in the document responsibility for late repayment of financial obligations. Otherwise, the procedure for preparing a GP for payment for goods is no different from the parameters for preparing analogues.

If a business partner misses payment deadlines, and the other party notices this fact, then the debtor can legally indicate in a letter the time for repayment of the debt.

Consequently, the amended document will be accepted as an annex to the main agreement. The terms will be considered changed only in cases where the other party responds to the sender with the same letter.

Sample payment letter

In guarantee documents on the implementation of various activities or the provision of services, senders provide guarantees to their counterparties that a certain set of activities will be completed on time. Such documentation may contain several time frames during which the contractor will carry out the work and deliver it in stages.

Practice shows that contractors resort to using letters when initial deadlines are missed to provide clarity to customers. However, this does not confirm that the direct customer will agree to the updated list of conditions.

It is allowed to present guarantees of the quality of work performed. Quality means the implementation of measures in accordance with SNiP and GOST. It is possible to draw up a letter if the parties to the transaction have not previously concluded an agreement, as a result of which the document can be regarded as an invitation to form an agreement.

About deferment

If an organization cannot, due to objective reasons, transfer funds to the supplier’s account, then, first of all, it is important not to spoil the existing business relationship. Writing a deferred payment letter helps with this. A sample is shown below:

Sample about deferred payment

Companies that have received financial claims from suppliers do not need to hide from fulfilling their responsibilities. It is worth reporting that management plans to repay the debt as soon as possible, but given the current circumstances at the current time, this is impossible to do.

To ensure that the supplier does not go to the district court, a GP is sent in response to the claim. It indicates that the organization agrees with the need to pay the assigned penalty and accumulated interest. Otherwise, a request to cancel a certain amount will be reported.

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The supplier may be forced to include in the income line the full amount of the penalty that is recognized by the buyer. This is fully stated in the letter of the Ministry of Finance of the Russian Federation No. 03-03-06/1/42838 dated July 24, 2021.

The issuance of a letter of deferred payment to the supplier must necessarily be associated with the willingness to repay costs within the required time frame. An argument is given as to why it is beneficial for one of the parties to make concessions.

For example, if two organizations have established cooperation recently and there have been no delays in payments before, then the buyer will necessarily pay the debt and compensate for the damage.

About payment in Kazakhstan

Document samples in Kazakhstan are no different from their Russian counterparts. In most cases the following example is used:

Sample letter in Kazakhstan

Important: compilation is carried out on a classic A4 sheet. If a document is sent by one of the parties to a transaction in response to a submitted claim, then its number and date must be clearly stated. In cases where a document is formed on several pages, they must be numbered and bound.

About hiring

To draw up a Statement of Application for admission to a permanent place of employment, a standard procedure is used. Despite this, it is imperative to follow the following algorithm of actions, taking into account the implementation of the required nuances:

in the upper left corner of the document the number of outgoing correspondence and the date of its generation are written down - the number is assigned to the division of the organization whose employees are directly responsible for conducting business correspondence (office, secretariat, human resources department);

Letter of guarantee for hiring a foreign citizen

• the name of the company acting as the recipient of the letter is indicated;
• the name of the document is written in capital characters before the main text;
• the contents of the document are drawn up, which specifies the full name of the employing institution, the full name of the applicant for the job, the date of admission or the time period during which the applicant will be hired as a permanent employee;
• explains the amount of wages, quantitative indicators of bonuses and guarantees provided for by the norms of the current Labor Code of the Russian Federation;
• At the end of the document, the full name of the head and the authorized employee of the company’s personnel service is indicated, and an imprint of the organizational seal is affixed.

Important: if a document on employment is drawn up on behalf of an individual entrepreneur, then due to the lack of a company seal, the document in each case must be notarized.

About the execution of construction work

The validity of an analogue of a guarantee certificate for the completion of construction work fully applies to activities carried out within the framework of the agreement between the contractor and the customer. A warranty period is established for the work, which is calculated from the date of acceptance by the customer and signing of the relevant Certificate.

The warranties cover all structural components without exception.

The contractors claim that within the period specified in the contract, the results of the work will be:

• comply with the terms of the agreement, quality indicators and declared data;
• ensure stable operation;
• preserve the properties of the constructed object
• ready for continuous use.

In case of detection of non-conformities, the customer has the right to the following requirements:

• quick elimination of deficiencies;
• development of another object from the same materials as the original one;
• reimbursement of costs incurred during the elimination of nonconformities;
• full compensation for losses incurred due to non-fulfillment of work.

Example of writing a letter about construction work

In situations where, during the time allotted for eliminating errors, it is revealed that they will not be eliminated within the period established by the letter, the parties can, as a general rule, take care of concluding an additional agreement. In this case, the guarantees are automatically extended for the entire period of elimination of defects.

Under no circumstances can guarantees apply to cases of intentional damage to the structure of a constructed facility by third parties, as well as to cases of violation of regulated operating rules.

Letters of guarantee in the construction industry are formed strictly in duplicate, having identical legal force. One document is transferred to each of the parties to the Agreement.

The effect begins from the moment of signing and continues for a certain warranty period. The conditions can be changed by concluding an additional agreement between both parties to the transaction. Premature termination of a letter follows the same procedure.

Procedure for signing and delivery

The letter of guarantee is signed by the head of the company or an employee authorized to work with such documents. In this case, the position is indicated, the full name is written down and a personal signature is placed. There are several ways to deliver a letter:

• In person - the addressee must sign for receipt;
• by mail - the letter is sent by registered mail and requires delivery by the postal service against signature;
• via communication means - fax or email.

It is also worth noting that the letter does not need to be certified by a notary.

Sample applications

LETTER OF GUARANTEE

By this letter we undertake to repay, by June 15, 2021, the existing debt under the contract for the supply of non-food products No. 132/TK dated January 20, 2016 for payment for the goods supplied in the amount of 123,466 (one hundred twenty-three thousand four hundred sixty-six) rubles, taking into account VAT. Payment will be made in equal monthly installments:

• until April 15, 2016 – RUB 41,155.
• until May 14, 2016 – RUB 41,155.
• until June 15, 2016 – RUB 41,156.

General Director __________________ /A.N. Ivanov/

Sample No. 2

LETTER ON DEBT PAYMENT

Due to the difficult financial situation at the enterprise due to a delay in financing from the customer, your organization currently has an unforeseen debt under subcontract agreement No. 567/2015 dated November 17, 2015 in the amount of 670,000 (six hundred seventy thousand) rubles. In turn, we guarantee that the debt will be repaid in full by December 30, 2016.

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In case of failure to pay on time, interest will be paid at the rate of 1% of the amount of overdue obligations for each day of delay.

Director _______________V. L. Sobolev

Chief accountant _______________I. V. Pisareva

Sample No. 3

In response to your claim No. 434 dated August 13, 2015, we report the following:

On May 10, 2014, a lease agreement for non-residential premises No. 678-56 was concluded between our organization and you. Indeed, according to the reconciliation report dated June 30, 2015, our organization incurred arrears in paying rent and utilities for June and July 2015 in the amount of 60,000 rubles. In turn, we apologize for the improper fulfillment of our obligations (due to the blocking of the current account by the tax service) and guarantee to repay all outstanding debt in full by September 30, 2015. We also guarantee not to violate the terms of the agreement concluded between us in the future.

Director ______________/V.I. Ivanov/

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When lending a large sum to someone, it is useful to think about additional guarantees for the return of your money and draw up a letter of guarantee for payment: a sample can be easily downloaded in our article - and there you can also learn how to fill it out correctly.