Learn what a Bank Guarantee is, explore the available types, and follow our step-by-step guide to apply directly from your Wio Business app.

What is a Bank Guarantee?

A Bank Guarantee (BG) is an official financial commitment issued by Wio Bank on your behalf to your business partner or client (the Beneficiary). It assures them that if contractual or payment obligations are not fulfilled, Wio Bank will compensate them up to the agreed guarantee amount.

This helps your business build trust with partners, win tenders, and secure contracts without transferring upfront cash directly to third parties.

Types of Bank Guarantees Available in the App

Key Requirements & Limits

• Security: Bank Guarantees in the app are cash-backed. You will lock the guarantee amount in a dedicated Savings Space in your Wio Business account for the duration of the guarantee.

• Interest: Funds locked as security for a Bank Guarantee do not earn interest.

• Limits:

  • Minimum Guarantee Amount: AED 5,000

  • Maximum Guarantee Amount: AED 10,000,000 (Standard format guarantees up to AED 5,000,000 require no additional credit assessment).

• Document Needed: Your final signed commercial agreement or contract in PDF format (maximum file size: 10MB).

• Delivery: Official physical guarantees (with original wet stamp and signature) are delivered within 3–4 business days once requested.

How to Apply for a Bank Guarantee in the Wio Business App

Follow these simple steps to submit your application:

Step 1: Start Your Application

1. Log in to the Wio Business app.

2. Go to the Credit section.

3. Scroll down to Bank guarantees and tap Learn more.

4. On the informational screen, tap Apply now.

5. Review the T&Cs and Key Fact Statement (KFS), then tap I accept.

Step 2: Enter Guarantee Details & Upload Documents

1. Under What’s the bank guarantee amount, enter the required guarantee amount matching your contract.

2. Under Enter the bank guarantee details, provide:

   • Guarantee type, purpose, and language/format

   • Beneficiary name and optional IBAN

   • Start and End Date

3. Upload your final signed agreement under the document upload section (PDF format, max 10MB), then tap Next.

Step 3: Review and Share the Draft

1. A digital draft of your Bank Guarantee letter will be generated instantly.

2. Review the details or share the digital draft with your client/beneficiary to ensure everything meets their requirements before finalizing.

3. If you or your client require an original physical hard copy with an official stamp and signature, tap Request a physical document.

Step 4: Lock Deposit and Submit

1. Tap Lock deposit.

2. Select the account with the required available balance (a dedicated Savings Space will be created to hold the security deposit).

3. Review the summary details and tap Submit request.

Note: If you start an application and need to complete it later, you can select Resume Application from the Credit screen. Incomplete drafts automatically expire after 30 days.

Fees & Pricing

• Cash-Backed Bank Guarantees: Currently offered at 0% commission (limited-time promotion).

Frequently Asked Questions (FAQs)

How is a Bank Guarantee different from a Letter of Credit?

• A Letter of Credit (LC) is primarily a payment mechanism used in international trade to ensure sellers receive payment upon presenting compliant shipping documents.

• A Bank Guarantee (BG) is a protection mechanism ensuring compensation if contractual obligations are not met.

Can I track my application status?

Yes. Go to the Credit section in the Wio Business app and select Bank guarantees to see real-time updates on your application and issuance status.

Can I cancel or amend an issued Bank Guarantee?

• At expiry: You can request the release of your locked security funds directly through the app 15 days post-expiry.

• Before expiry: Early cancellation requires a formal No Objection Certificate (NOC) from the Beneficiary and the return of the original physical guarantee letter. Please reach out to Wio Customer Care for assistance with early cancellations or amendments.

Can I stop a payment if the Beneficiary makes a claim?

Because a Bank Guarantee is an independent, unconditional legal commitment, Wio Bank is obligated to pay valid claims that meet the guarantee terms unless a UAE court order is issued instructing the bank to stop payment.

Who can I contact for help?

Reach out anytime through in-app chat support or call our Customer Care helpline at +971 600 500 946.

Wio Business — Offered Letters: Bank Guarantee (BG)

Bank Guarantee (BG) — Complete Guide

What Is a Bank Guarantee?

A Bank Guarantee (BG) is a promise from Wio Bank to pay a specified amount to a third party (called the "beneficiary") if you don't fulfil a contractual obligation. It gives the beneficiary confidence that they'll be compensated if something goes wrong — without requiring you to pay upfront.

Bank Guarantees are separate from your underlying business deal. The bank's responsibility to honour a valid claim is independent of any dispute between you and the beneficiary.

Who Can Apply?

Types of Bank Guarantees

Wio Bank supports four standard types:

How It Works — Step by Step

Step 1 — Apply

Submit your application through the Wio Business app. You'll need:

• Guarantee type and purpose
• Amount (minimum AED 5,000 — maximum AED 10,000,000)
• Start and expiry dates
• Beneficiary name and details
• The related contract or agreement (PDF, max 10 MB)

Step 2 — Lock Your Deposit
Your guarantee is fully backed by cash. You'll need to lock a deposit equal to the guarantee amount in a dedicated savings space.

• This deposit does not earn interest
• It remains locked until the guarantee is cancelled or expires

Step 3 — Review Your Draft
A draft guarantee letter is generated for you to review and share with the beneficiary before the final version is issued.

Step 4 — Receive Your Guarantee
Once you submit your request and lock the deposit, the official bank guarantee will be issued and delivered within 3–4 business days. The original physical copy includes Wio's official stamp and signature.

How to Apply in the App

1. Log in to the Wio Business app → go to Credit → scroll to Bank Guarantees → tap Learn More → tap Apply Now
2. Review and accept the Terms & Conditions and Key Fact Statement
3. Enter the guarantee amount
4. Fill in the guarantee details: type, purpose, letter format, beneficiary name, IBAN (optional), start and end dates
5. Upload your contract or agreement
6. Review the draft letter — share it with your client to confirm details
7. Lock the security deposit → choose the account with available funds → review all details → Submit Request
8. Track your application status in the Credit section of the app

Note: If you start an application but don't complete it, it will automatically expire after 30 days. You can resume it anytime before that from the Credit page.

Standard vs. Custom Guarantee Letters

Custom format requests are currently handled manually. App support is coming soon.

Fees

• Cash-backed guarantees: No commission (limited-time offer)
• Facility guarantees (when available) will have separate pricing — see below:

5% VAT is applicable on facility guarantee charges.

Making Changes to Your Guarantee (Amendments)

Common amendments include changes to:

• Validity period (extension)
• Amount
• Beneficiary details
• Guarantee wording
• Underlying contract details

Amendments are currently processed manually. Contact our support team to submit a request. App-based amendments are coming soon.

Renewing Your Guarantee

• Submit a renewal request before the guarantee expires
• If the guarantee has already expired, you'll need to apply for a new one
• You can renew with or without changes to the terms

Renewals are currently processed manually. Contact our support team. App-based renewals are coming soon.

Cancelling Your Guarantee

After cancellation, the locked funds are transferred back to your account.

What If the Beneficiary Makes a Claim?

1. You'll be notified on the same day
2. The bank will verify the claim documents and the beneficiary's details
3. If everything is in order, payment is released to the beneficiary's account within 2 business days
4. The guarantee is then cancelled, and any remaining locked deposit is released

Can I stop a claim? Only with a court order. Without one, Wio is obligated to pay if the claim is valid.

How to Close or Discharge a Guarantee

Once the obligation is fulfilled, contact our customer support team to close or discharge the guarantee.

Frequently Asked Questions

Is a Letter of Credit the same as a Bank Guarantee?

No. A Letter of Credit (LC) ensures a seller gets paid when trade terms are met. A Bank Guarantee (BG) compensates the beneficiary if you fail to meet your obligations.

What documents do I need to apply?

Just the related agreement or contract between all involved parties. Upload it in the app.

Can I apply from the app, or do I need to visit a branch?

You can apply directly through the Wio Business app — no branch visit needed.

Will I earn interest on the locked deposit?

No. The deposit is held as security and does not earn interest.

Can I download or share the issued guarantee from the app?

Yes. A draft version is available to share and confirm with the beneficiary before issuing the final physical guarantee.

How can I track my application?

In the Wio Business app, go to Bank Guarantees to see real-time updates on status and pending actions.

Need Help?

For the quickest and most secure support, you can contact Wio Care directly through the Wio application:

1. Open the Wio app.
2. Tap Support in the top-right corner.
3. Start a chat by sending a simple "Hi" and select the topic you need help with.
4. A Wio Care specialist will assist you shortly.

If you prefer to speak with someone, you can reach Wio Care 24/7 at +971 600 500 946.

Please note: Wio Care support is no longer available via WhatsApp. All support requests are now handled through the Wio app or by phone.

We're always here to help and look forward to assisting you. ?