- GLOBAL BUSINESS
Bank Guarantee is an irrevocable commitment by a bank to pay a specified sum of money in the event that the party requesting the guarantee fails to perform the promise or discharge the liability to a third person in case of the requestors default
A bank guarantee allows you to offer customers, suppliers and other third parties a guarantee of payment to secure a contract or leasing arrangement without tying up your working capital or affecting your other business activities.
A bank guarantee may suit your business if you need to promise payment to a third party, (e. g: to secure a business contract or leasing arrangement) or if you are in an industry such as property development, building, contracting or retailing.
Types of Guarantees: