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End-to-end online workflows - no paper, no postage - reducing time, risk, and environmental impact.
How a Bank Guarantee Works in Australia
From application to release — the full lifecycle explained in plain English
If you’re new to bank guarantees, this guide breaks down the parties involved, the step-by-step process, acceptance wording, claims, and how digital verification reduces risk for everyone.
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Features and Benefits
MyGuarantee offers secure, cost-effective and sustainable digital bank guarantees through an efficient and responsive application process - delivering speed, transparency, accuracy and security.
Fast
Digital requests and confirmation with beneficiaries
Cash Secured
Cash secured with Perpetual and AMP
No Fees
No application fee and no recurring fees
Key Features
Everything you need to deliver a complete MyGuarantee experience.
Same-day processing
Once onboarding is complete, guarantees can be created, approved and activated in hours.
Secure against fraud
Bank-grade encryption, verification, and role-based access controls across every action.
Live tracking
Real-time status from application to issuance, amendments and cancellation.
Reporting
Customisable reports for audit and operations.
Real-time updates
Instant email and dashboard notifications on status changes and required actions.
Full transparency
Clear visibility over every step to build trust with applicants and beneficiaries.
Documents dashboard
Single place to view, manage and download digital guarantees and related files.
Visible audit trail
Immutable, time-stamped logs of changes and approvals - auditor-ready, always.
Who’s involved & why it matters
A bank guarantee is a bank’s promise to pay the beneficiary if the applicant doesn’t meet agreed obligations. If you need a refresher, start with what is a bank guarantee. Common uses include commercial leases, construction performance, payment security and tenders. For leases, see commercial lease bank guarantee.
The lifecycle at a glance
1) Apply
The applicant submits entity details, beneficiary info, amount and expiry, plus supporting documents. Do it online at apply digital bank guarantee, or review the practical setup steps in setting up bank guarantees online.
2) Issue
Once approved and funded, the issuing bank creates the instrument with the agreed wording and terms. Digital issuance avoids paper and couriers — learn more in digital vs paper bank guarantee.
3) Verify & manage
Beneficiaries can confirm authenticity via bank guarantee verification online. Applicants and beneficiaries track status, amendments and releases with audit trails.
Acceptance wording & requirements
The guarantee’s wording should match your lease/contract, including governing law, presentation rules, and any claim conditions. See bank guarantee requirements in Australia and our landlord requirements template.
Claims, reductions & final release
If obligations aren’t met, the beneficiary may present a claim per the instrument’s terms. Many agreements allow staged reductions after milestones (e.g., fit-out completion) and a final release when obligations end. Digital management makes this easier to track — compare options on the digital bank guarantee platform.
Timelines, fees & speed
Total time depends on onboarding, document readiness and approvals. Digital processes are typically faster, with same-day options in many cases — see same-day digital bank guarantee. Review typical costs on bank guarantee fees.
Why go digital?
Digital issuance reduces fraud, removes courier delays, and adds role-based access with immutable logs. Read the benefits of digital bank guarantees and browse real-world feedback in digital bank guarantee reviews.
Frequently Asked Questions
Australia-specific, clear answers
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What documents do I need?
What documents do I need?
Entity details (ABN/ACN), beneficiary details, financials, and draft wording if provided by the landlord/principal.
For a quick checklist, see how to get a bank guarantee.
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How do beneficiaries verify authenticity?
How do beneficiaries verify authenticity?
They can validate online to reduce fraud and disputes.
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Where can I get one?
Where can I get one?
Compare providers in where to get a bank guarantee.
Ready to proceed? Start at apply digital bank guarantee.
Ready to move from theory to action?
Apply online in minutes and manage everything digitally — or book a quick demo to see the workflow in practice.
Explore more topics: types · definition · digital vs paper · benefits · SMB guide · instant online · same-day issuance