What does bank guarantee mean

A bank guarantee is a type of guarantee from a lending institution. The bank guarantee means a lending institution ensures that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.

Note that a bank guarantee is not the same as a letter of credit. Bank guarantees can also be used to secure performance under a contract. And the applicant is the party who seeks the bank guarantee from the.

What is the meaning of a bank guarantee ? At present, this small request helps thousands of people worldwide to get money to fulfill their . Bank Guarantee financial definition of Bank Guarantee https://financial-dictionary. Alternatively, it can be open-ende providing maximum flexibility . A guarantee kicks in if services or goods are not provided to the buyer by the seller as per the specifications mentioned in the contract.