Bank guarantees

Bank guarantees

Bank guarantees-a form of securing the obligations of one partner to another on the basis of a contract concluded between two business partners. The bank undertakes to pay the amount provided by the guarantee in case of a written claim in accordance with the terms of the guarantee. The guarantee is not a payment instrument, payment under the guarantee is made in case of failure of the client to fulfill its obligations. When using a bank guarantee payment is made not in advance, and partially or after delivery.