What purposes can a bank guarantee be used for?
A guarantee issued by the bank provides security to your company and helps manage risks especially when your contracting party is new or you are about to conclude a major transaction.
Bank guarantees can be used as security for many types of transactions, such as various deliveries, works contracts, purchases of goods and property or other payment obligations. A bank guarantee can also be used to fulfil the security obligations provided for by different official regulations and legislation.
Your company can also require a bank guarantee from its contractual partners if you want to be sure that your partner will be able to fulfil the agreement terms and conditions. In fact, the guarantee provides you with protection in your business especially when you do not yet know your contracting partner very well. A bank guarantee serves as safe and reliable security for both parties.
In domestic trade, a guarantee as for one’s own debt is mainly used, whereas in international trade, an on-demand undertaking is usually used. We have written guarantee texts for foreign trade which you can offer your trading partners across the world – you can find them hereOpens new window. The ready-made guarantee texts will speed up the processing of orders and are an expedient solution for all parties.