Today the bank guarantee is a convenient tool that is designed to reduce the risks of non-performance of the contract. You can get this document at any bank if you refer to it, but there is another way, you can use the services of a special company that deals with this type of activity.
Nowadays, it is a bank guarantee that is the ideal way to comply with obligations, the essence of which is that the guarantor bank issues a special guarantee in favor of the creditor at the request of the debtor. In accordance with this document, the bank must pay the entire amount to the creditor on the part of the debtor. You can also purchase this guarantee for yourself and with the help of a special company. Any company or foreign organization can buy it.
Now many entrepreneurs want to buy a bank guarantee, since they are convinced that it is much more profitable than taking out a commercial loan at a bank, since the interest on them is very high. As for the time of the process of issuing a bank guarantee, it is not very long, the period is three days from the date of submission of the application. Today, there are several types of bank guarantees in the world, but the most common of them are:
- Bid guarantee . It can be used to ensure the fulfillment of obligations through a tender to its customers.
- Advance return guarantee . The bank is obliged to return the advance payment to the buyer, in the event that the seller did not manage to fulfill all the terms of the agreement on time (delivery of goods or provision of services).
- Contract fulfillment guarantee . The bank assumes obligations that the counterparty did not fulfill in relation to the creditor, that is, he violated the terms of the contract.
