-BG- BANK GUARANTEES

A promise made by a bank to meet the liabilities of a debtor if that person fails to fulfill his contractual obligations. There are two

types of bank guarantees — direct or indirect:

A direct guarantee is one where a bank is asked to provide a guarantee by its account holder, in favor of the beneficiary.

In an indirect guarantee, a second bank issues a guarantee in return for an already-issued guarantee. if the second bank suffers

losses when a claim is made against the guarantee, the issuing bank ensures that it compensates all the losses.

Guarantees provide comfort to the beneficiary; if the applicant fails to meet his obligations (either financially or by performance)

as per the contract made between the applicant and the beneficiary, the beneficiary will have the guarantee to turn to for

payment.

Having a guarantee issued in support of a client’s transaction can help the client grow and expand their business by postponing

current payments for goods and/or services to a later date, providing comfort to buyers, allowing clients to bid on transactions,

and without requiring that GLOBAL CONNECT TRADING's clients tie up their available cash.

Request application forms via email.