A bank issues a payment guarantee on behalf of a buyer or contractor, undertaking to pay the beneficiary a stipulated amount if the principal fails to fulfill contractual obligations.
Source: https://www.investopedia.com/terms/b/bankguarantee.asp
Matching tools and partners
You might also be interested in these terms
Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.
Free · No password · Never a paywall. Weekly top news and facts from logistics.
Share your knowledge, ask follow-up questions, or add practical insights to this page. Every contribution is moderated before publication.