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Futuresafe Bank Guarantee

Bank Guarantee

Bank guarantee services are financial services provided by banks to their customers, typically businesses or individuals engaged in international trade or other commercial activities. A bank guarantee is a written commitment by a bank to pay a certain amount of money to a beneficiary, usually a seller or a contractor, in the event that the customer, or the principal, fails to fulfill their contractual obligations.

 

Bank guarantee services are a type of financial service provided by banks to their clients to mitigate the risks associated with commercial transactions. A bank guarantee is a written commitment by a bank to pay a specified amount of money to a beneficiary if the client, or the principal, fails to fulfill their contractual obligations.

Bank Guarantee

  • A bank guarantee serves as a promise from a commercial bank that it will assume liability for a particular debtor if its contractual obligations are not met.

  • In other words, the bank offers to stand as the guarantor on behalf of a business customer in a transaction.

  • The bank guarantee means that the lender will ensure that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.

 

  • A bank guarantee enables the customer (or debtor) to acquire goods, buy equipment, or draw down a loan.

Types Of Bank Guarantee

Earnest money Deposit guarantee or Bid Bond Guarantee

Bid Bond Guarantee provides a guarantee that a winning bidder will take up the contract as per the terms at which they bid.

Financial Guarantee

Financial Bank guarantee is an agreement that guarantees a debt will be repaid to a lender by another party if the borrower defaults.

 

Advance Payment Guarantee (APG)

Also called an advance payment bond. A contract under which the issuer undertakes to be responsible for the fulfilment of a contractual obligation owed by one person to another if the first-person defaults.

 

Deferred Payment Guarantee (DPG)

This refers to a bank guarantee or a payment guarantee that is offered to the exporter for a deferred period or for a certain time period.

Deferred Payment Guarantee is a guarantee for a payment usually on installments which has been deferred or postponed

 

Performance Guarantee (PG)

Under a performance guarantee, compensation of money will be made by the bank when there is any delay in delivering the performance or operation.

 

Retention Money Guarantee

This is the guarantee given for release of the retention money under any project.

Grow Your Business

Every business or entrepreneur are different and demand tailor made and practice solutions to specific business problems or hurdles. We are focussed in establishing customer centric approach, based on merits and within the legal and process strong policies of the respective banks and our Company policies.

Futuresafe Bank Guarantee

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