Bank Guarantee is a promise made by the bank to any third person to undertake the payment risk on behalf of its customers. A Bank guarantee is given on a contractual obligation between the bank and its customers. Such guarantees are widely used in business transactions to protect the third party from financial losses or performance related losses.

Bank guarantees are of predominantly of two types: Financial and Performance.

A Bank Guarantee can be obtained at low fees, with fewer documents, and is generally processed quickly.  But at times, if the applicant is a loss-making entity or an entity with financials that are not very impressive, it becomes difficult to obtain bank guarantees.  In such cases, the banks may ask for additional collateral security or may take longer to process the application to assess the financials.

If you are stuck at any level of application, contact us.  We have the expertise to negotiate terms with the banks, making the transaction beneficial for all the parties involved.