Non-financing letter of guarantee refers to the credit guarantee provided by the bank for the non-financing business activities of customers such as trade or project bidding based on the qualified counter-guarantee conditions provided by customers within the prescribed scope.
A letter of guarantee refers to a written payment guarantee with a certain amount, a certain period of time, a certain payment responsibility or economic compensation made by a bank as a guarantor to the beneficiary of a commercial transaction at the request of the applicant.
What is the difference between financing guarantee and non-financing guarantee?
Financing guarantee is usually issued under the condition that enterprises seek financing and help enterprises obtain credit lines, so there is no objective trade background; The non-financing guarantee has an objective trade background. In addition, financing guarantee has ISIN code, while non-financing guarantee has no ISIN code.