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Korean: 한국 고객을 위한
Staff Answer
Jan 27, 2020 - 11:35 PM
Hi,
Thanks for your question. Allow me to answer it for you.
A Bank Guarantee is an agreement between 3 parties specifically, the bank, the beneficiary, and the applicant. The beneficiary is the one who takes the guarantee. And the applicant is the party who pursues the bank guarantee from the bank. Bank Guarantees are a vital banking arrangement and it plays an important role in encouraging international and domestic business. It is a way for companies to prove their creditworthiness. It is a ‘promise’ to make payment to a third party under certain circumstances – such as the failure of obligations from the buyer. In the case of international BG, along with the 3 parties, there is also a “correspondent bank”. If a bank does not have a branch in some foreign country, it issues BG in that country through its “correspondent bank”. The bank does all the required due diligence, financial and business analysis before issuing the guarantee.
Hope this answers your question.
Thanks and regards,
go4WorldBusiness.com Team
Thanks for your question. Allow me to answer it for you.
A Bank Guarantee is an agreement between 3 parties specifically, the bank, the beneficiary, and the applicant. The beneficiary is the one who takes the guarantee. And the applicant is the party who pursues the bank guarantee from the bank. Bank Guarantees are a vital banking arrangement and it plays an important role in encouraging international and domestic business. It is a way for companies to prove their creditworthiness. It is a ‘promise’ to make payment to a third party under certain circumstances – such as the failure of obligations from the buyer. In the case of international BG, along with the 3 parties, there is also a “correspondent bank”. If a bank does not have a branch in some foreign country, it issues BG in that country through its “correspondent bank”. The bank does all the required due diligence, financial and business analysis before issuing the guarantee.
Hope this answers your question.
Thanks and regards,
go4WorldBusiness.com Team
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