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Guide

Guarantee overview: total exposure under control

Guarantees and sureties rarely show up in liquidity planning — and that is exactly what makes them dangerous. They tie up no cash until they are called, yet they consume your guarantee line and, in the worst case, your liquidity. A clean guarantee overview shows type, amount, remaining term and total exposure at a glance.

What is a guarantee overview?

A guarantee overview is the structured list of all of a company’s guarantees and sureties — with beneficiary, type, amount, term and issuing bank. It answers the two questions that always come up in a bank meeting: how high is your total exposure, and how much free guarantee line remains?

What types of guarantee are there?

A few types dominate in the mid-market — each with its own logic and risk:

Advance-payment, warranty and performance bonds secure construction and project business and often run for years. Rent guarantees replace a cash deposit. Customs and litigation bonds are rarer but large. For the overview, what matters is a consistent structure so amounts and deadlines can be compared.

Total exposure & line utilisation

Total exposure is the sum of all open guarantees. Against the guarantee line granted by the bank, this gives you utilisation — the metric that decides whether the next order can still be secured.

TypeExposure (€)Share
Performance720,00048%
Warranty540,00036%
Advance payment240,00016%
Total exposure1,500,000of €2.0m line

Just as important as the amount is the remaining term: expired warranty bonds that were never returned block your line for no reason. That is why a deadline alert before expiry belongs in any serious guarantee overview.

Guarantees in the same status as your liquidity

LiquidityLens keeps guarantees by type, total exposure and deadline — in the same financial status as banks, receivables and the 13-week outlook.

See the Liquidity Control Sprint

Frequently asked questions

Does a guarantee count as liquidity?
Not directly — a guarantee ties up no cash as long as it is not called. But it reduces your free guarantee line and becomes liquidity-relevant immediately if drawn. So exposure belongs next to liquidity planning, not inside it.
What does a guarantee cost?
Banks charge a guarantee commission on the bond amount, usually per year. Expired but un-returned guarantees therefore keep costing money — an often-overlooked item that an overview with deadlines makes visible.
Excel or a tool?
Up to a handful of guarantees, a spreadsheet is fine. With multiple entities, banks and running projects, a system that keeps exposure and deadlines current automatically — and links them to the rest of the financial view — pays off.