There are cases when business owners do not have sufficient finances to continue their ventures. Therefore, getting financial assistance for financial institutions is one of the best options. As of now, one of the most common options business owners opt for to buy or sell items is by applying for a bank guarantee. To know more, below are some of the types of bank guarantees.
Guarantee of payment
This type of guarantee is a security of payment obligations of Buyer to Seller.
Guarantees of advance payment return
This guarantee represents an obligation of the bank to return advance payment in the event that, after receiving an advance, the Seller does not perform its contractual obligations.
Contract execution guarantee
This guarantee is a security of timely delivery of goods or performance of services according to a contract.
This type of bank guarantee plays a role of security in those cases when the Company fails to perform its obligations to tender organization or other party that is stipulated in the order received by winning the tender.
Guarantee in favor of the customs authorities
This bank guarantee is a security of obligation of the company performing import and export operations to the Customs authorities for payment of customs taxes and duties.
Guarantees of warranty execution
This type of bank guarantee plays a role of security of quality for delivery to the contract terms.
Guarantee of credit return
Guarantee of credit return is a solution that provides security for repayment of credit.
Info Trivia Source From: www.business.hsbc.ae