Bank Guarantee
This query is : Resolved
Sheela Nair
(Querist)
15 October 2010
What is a bank gurantee? and when it is used?
CMA Ramesh Krishnan
(Expert)
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.
Ajay Mishra
(Expert)
16 October 2010
Hi
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.
Regards
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.
Regards
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