Bank Guarantee
Bank Guarantee
An assurance to a beneficiary that the bank will uphold a contract if the applicant and counterparty to the contract are unable to do so. A guarantee means giving something as security.
Letter of Credit
Letter of Credit Importers and exporters normally require intermediaries such as banks or alternative financiers to guarantee payment and also the delivery of goods. Cash advances or trade credits on open accounts are usually used after the buyer and seller develop a trusted relationship. Therefore trade finance structures are used to support these relationships.
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