Letters of Guarantee
What is it ?
A Letter of Guarantee is a document that assures the completion of a specific task, the settlement of a debt, or the timely delivery of goods under specified conditions within a set period. Additionally, it guarantees that, in the event of non-compliance, the predetermined compensation amount will be paid by the bank without conditions.
Benefits
- Ensures the security of commercial relationships.
- Enables business operations without tying up capital.
- For dealers, fulfills working capital needs through a letter of credit for purchases.
- Provides support for the advance financing of significant investment projects, particularly with advance letters of credit.
- Facilitates the initiation of a project by offering payment commitment support.
- Secures compensation in case commitments or obligations are not met.