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There are many types of letters of guarantee, and the most common ones in engineering are tender letter of guarantee, performance letter of guarantee and advance payment letter of guarantee.

Bid bond is generally used for bidding to ensure that bidders participate in bidding activities in accordance with the provisions of the bidding documents; Performance bond refers to the bond that guarantees the contractor to perform the obligations stipulated in the construction contract signed with its owner; Advance payment guarantee means that the owner often pays a certain proportion of the project money in advance for the contractor's turnover. In order to ensure that the contractor will use the money for engineering construction and prevent the contractor from misappropriating, absconding with the money or declaring bankruptcy, the bank needs to provide the contractor with an advance payment guarantee of the same amount. A bank guarantee can be issued by opening an account in a bank or by a guarantee company. If you don't understand anything, you can add me as a friend, or privately trust me O(∩_∩)O~

What is a bank guarantee and what is its function?

Advance payment guarantee refers to a way for banks to provide guarantees to contractors. After the bank issued an advance payment guarantee that met the business requirements, the contractor received the advance payment, but failed to deliver the goods or carry out the construction on time according to the contract terms (you can understand it as a breach of contract). At this time, the owner can provide relevant evidence and file a claim with the bank, and the bank is obliged to pay as needed.

The contractor can open a balance guarantee in the bank by himself, depending on the contractor's credit status in the bank. The proportion of deposits with good credit is relatively low, and the proportion of deposits with bad credit is relatively high, even full deposits. I can issue balance guarantee, bid guarantee, performance guarantee and other bank guarantees without margin, and there is no mortgage pledge. The ratio is very low. I'm interested in private chat.

What exactly does a bank guarantee mean? An easy-to-understand explanation.

Bank guarantee is also called bank guarantee, bank credit guarantee or short-term guarantee.

A bank guarantee refers to a written commitment document issued by a bank at the request of a customer. Once the customer fails to repay the debt or fulfill the agreed obligations according to the contract signed with the beneficiary, the bank will fulfill the guarantee responsibility.

What does back-to-back bank guarantee mean?

Is it a back-to-back letter of credit or a letter of guarantee?

The difference between bank guarantee and commercial guarantee is 15.

Bank guarantee:

A bank guarantee, also known as a letter of guarantee, refers to a written credit guarantee certificate issued by a bank, an insurance company, a guarantee company or a guarantor to the beneficiary at the request of the applicant to ensure that the guarantor will perform certain payment or economic compensation responsibilities on behalf of the applicant within a certain amount and within a certain period of time when the applicant fails to perform its responsibilities or obligations as agreed by both parties;

At present, the most commonly used bank guarantees are: bid guarantee, performance guarantee, payment guarantee and advance payment guarantee.

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Performance bond:

Performance guarantee refers to the performance guarantee commitment made by the bank financial institution to the project owner (beneficiary) at the request of the labor service provider and the contractor (applicant);

If the laborers and contractors can't complete the undertaken projects in time, quality and quantity in the future, the bank will pay the owner a sum of about 5%~ 10% of the contract amount;

The performance bond has certain format restrictions and certain conditions.

Commercial guarantee:

A commercial letter of guarantee refers to a letter of guarantee issued by a reputable and powerful commercial organization other than a bank.

What does the letter of guarantee mean? (Financial concept)

Definition of letter of guarantee: Letter of guarantee is a special way of guarantee, which transforms the commercial reputation of both parties to the transaction into bank reputation in business dealings. Letter of guarantee is different from general guarantee contract and standby letter of credit. Therefore, banks should pay more attention to reducing their own risks when issuing letters of guarantee. A bank guarantee refers to a written commitment document issued by a bank at the request of a customer. Once the customer fails to repay the debt or fulfill the agreed obligations according to the contract signed with the beneficiary, the bank will fulfill the guarantee responsibility. It has two characteristics: first, the letter of guarantee is issued according to the commercial contract, but it is not attached to the commercial contract and has independent legal effect. Second, bank credit as a guarantee is easily accepted by both parties to the contract. The legal relationship between the parties is: 1, the creditor-debtor relationship or other rights and obligations relationship between the principal and the beneficiary based on the contract signed by both parties. 2. The legal relationship between the client and the bank is based on the letter of guarantee signed by both parties. 3. The legal relationship between the guarantee bank and the beneficiary is a guarantee relationship based on the letter of guarantee. According to the nature of the guarantee, it can be divided into subordinate guarantee and demand guarantee. The demand guarantee refers to the unconditional payment obligation issued by the bank, which indicates in writing that when the beneficiary submits a claim that meets the terms of the guarantee or other conditions stipulated in the guarantee.

What is a bank guarantee and what is its use?

There is no bank credit guarantee. Loan guarantee is a written guarantee document issued by the bank to the lender at the request of the borrower to ensure that the borrower will repay the loan principal and interest when due, otherwise the guarantor will compensate. This guarantee shall take effect from the date of issuance until the date when the borrower pays off all the principal and interest. The guarantee liability of this letter of guarantee will automatically decrease with the repayment of the borrower. Credit line refers to the stock management index of short-term credit business approved by commercial banks for customers.

What does the commercial performance bond mean? What's the difference between commercial guarantee and bank guarantee? Please let the prawns know.

If the performance bond is issued by an enterprise, it is basically not recognized by the outside world, because the credit of most enterprises in China is very low. This is also closely related to the strength of the enterprise; Some enterprises obviously have the strength to perform their duties, but they just refuse to pay their debts; Even after the court decision, those who should fulfill the contract still try their best to stay. There are many such cases.

Qualified entrepreneurs are very trustworthy. It can also be judged that many business people can only be called bosses, not entrepreneurs, which is why. Enterprises have no credit, who dares to associate with business people without credit? Enterprises without credit are short-lived, regardless of maturity, present or future, without exception.

The performance bond of an enterprise is similar to the commercial acceptance bill of an enterprise and is basically not recognized by the outside world. Some domestic listed or unlisted enterprises open commercial acceptance bills or performance bonds all over the sky because of cash flow difficulties, and rely on the method of "robbing Peter to pay Paul" to fool people into lending everywhere; Experienced rich people don't approve. Borrowing money by inexperienced people shows that there are risks; Unless there are assets or corporate equity guarantees.

Speaking of enterprises looking for banks to open performance bonds, if it is limited business, as long as banks cooperate; Of course, you need to pay the deposit to the bank and pay it according to the prescribed proportion.

What is a bank guarantee? What is a bank guarantee?

Classification of bank guarantees

1. According to the relationship between the letter of guarantee and the basic transaction contract, it can be divided into:

(1) Attachment Guarantee

(2) Letter of independence guarantee.

2. According to the different situations of secured creditor's rights, it can be divided into:

(1) Unconditional Letter of Guarantee (Unconditional Letter of Credit)

(2) Conditional letter of credit

3. According to the different scope of use of the letter of guarantee, it can be divided into:

(1) export guarantee

I. Performance bond

In the import and export of general goods, performance bond can be divided into import performance bond and export performance bond.

1. Import performance bond.

Import performance bond refers to the guarantee commitment issued by the guarantor to the beneficiary (exporter) at the application of the applicant (importer). The letter of guarantee stipulates that if the exporter delivers the goods on time and the importer fails to pay according to the contract, the guarantor is responsible for repayment. This performance bond is a simple, timely and clear guarantee for exporters.

2. Export performance guarantee

Export performance bond refers to the guarantee commitment issued by the guarantor to the beneficiary (importer) at the application of the applicant (exporter). The letter of guarantee stipulates that if the exporter fails to deliver the goods as stipulated in the contract, the guarantor is responsible for compensating the importer for the losses. This kind of performance bond has a certain protective effect on importers.

Second, repayment guarantee.

Repayment guarantee is also called prepayment guarantee or deposit guarantee. Refers to the letter of guarantee issued by the guarantor to the other party of the contract at the request of one party. The letter of guarantee stipulates that if the applicant fails to fulfill his obligation to conclude a contract with the beneficiary and fails to refund or repay the money paid or paid by the beneficiary in advance, the guarantor will refund or pay the money to the beneficiary.

In addition to the above two types of guarantees, they can also be divided into other types of guarantees according to other functions and uses, such as: bid guarantee, compensation trade guarantee, processing guarantee, technology import guarantee, maintenance guarantee, financial lease guarantee, loan guarantee, etc.

What is a bank guarantee? Why don't some banks accept this business?

There are many types of letters of guarantee, all of which are of a credit nature and are guaranteed by the reputation of the bank. Therefore, when ordinary banks carry out such business, it is very risky to strictly screen customers and strictly review the use of guarantees. Some small banks are not qualified to issue letters of guarantee. Even if they do, the letters of guarantee issued may not be recognized by the other party, and there are also cases where the other party turns against each other. So not only the credit status of customers is very important, but also the credit status of the other bank, which is why some banks.