Financial Instruments:

Are often required when performing international trade or other large purchase contracts under which other forms of payment protections (such as litigation in the event of non-payment) can be difficult to obtain.

With a bank guarantee you can cover performance and payment obligations – for example, when submitting tenders or signing contracts, making advance payments, securing credits or delivering goods made on open-account terms. 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.

Bank Guarantees are widespread across the globe and are used in domestic and international 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.