In the case of a bank guarantee, the bank commits to pay a specific amount to the beneficiary if the principal fails to furnish a guarantee for an agreed performance or payment. Guarantees are widespread across the globe and are used in domestic and cross-border transactions. Bank guarantees are also a sound argument in negotiations, because a bank will only issue a guarantee after thoroughly verifying the principal's creditworthiness and ability to deliver.
The same principle applied in a different form
Whether a direct or indirect bank guarantee, standby letter of credit, simple or joint and several guarantee or confirmed payment order – bank guarantees come in a wide variety of legal structures and forms. Which bank guarantee is suitable in which case and for which type of transaction? Talk to us in good time so that we are aware of your situation and needs and can recommend the best possible solution.