{"@context":"https://schema.org","@type":"DefinedTerm","name":"Bank Guarantee (Foreign Trade)","description":"In cross-border trade, the bank guarantee steps in wherever differing legal systems, currencies, and geographic distance make direct trust between trading partners difficult. The issuing bank commits in writing to pay a specified amount to the beneficiary if the principal – buyer or seller – fails to perform: delivering goods, making payment, or returning merchandise. Three types are particularly common in foreign trade: advance payment guarantees protect prepayments made by the buyer; performan","inDefinedTermSet":{"@type":"DefinedTermSet","name":"Frachtportal Logistics Glossary","url":"https://www.freight-academy.com/en/glossary"},"url":"https://www.freight-academy.com/en/glossary/bank-guarantee-foreign-trade","inLanguage":"en","dateModified":"2026-06-16T05:27:46.577481","citation":"https://www.investopedia.com/terms/b/bank-guarantee.asp","markdownMirror":"https://www.freight-academy.com/api/md/glossary/en/bank-guarantee-foreign-trade","provider":{"@type":"Organization","name":"Frachtportal","url":"https://www.freight-academy.com"},"quickSummary":"Bank Guarantee (Foreign Trade) · In cross-border trade, the bank guarantee steps in wherever differing legal systems, currencies, and geographic distance make direct trust between trading partners difficult. · Quelle: https://www.investopedia.com/terms/b/bank-guarantee.asp"}