Guarantees

Guarantees

Guarantees

GUARANTEES

A guarantee is basically a legal undertaking by a bank on your behalf (the third party) where it guarantees the payment of a certain sum of money up to a certain limit to a beneficiary, in the event that your business fails to settle a debt or perform a legal obligation. A bank may take into account a number of factors before issuing a guarantee i.e. extent of liability, period expiry and credit standing.

Top