15 October 2010
Bank guanrantee is one type of non fund arrganement with bankers.it is an guanrantee of banker about the customer regarding some performance,financial viability. BG can be Fiancial BG or Performance BG.
A bank guarantee is a pledge on the part of a bank to make someone's debt good in the event that he or she cannot pay it. Bank guarantees are essentially like agreements to stand as a cosigner on a transaction; in the event that the original party cannot follow through, the bank can be called upon to provide the payment. Many banks offer bank guarantees as a service to their customers for the purpose of facilitating large business operations and deals, and this particular banking tool is primarily used by big customers such as corporations and governments.
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