Posted by: IrfanUpdated at : 12:30 AM
Tags: BANK
It is becoming more frequent to observe the figure of the bank guarantee in certain contracts; and it is that if this type of collateral ...
It is becoming more frequent to observe the figure of the bank guarantee in certain contracts; and it is that if this type of collateral previously recurring only at certain times, as in a loan, now is also visible in many leases, due mainly to the problems of defaults in the global economic crisis. For this reason, it is very important to know what is and how a bank guarantee.
What is a bank guarantee?
It is a bank guarantee that ensures compliance with a particular economic obligation. We can say that it works as a safe, as if the person who guarantees does not respond economically, the surety shall be shit of their financial obligations.
What is a bank guarantee?
It is a bank guarantee that ensures compliance with a particular economic obligation. We can say that it works as a safe, as if the person who guarantees does not respond economically, the surety shall be shit of their financial obligations.
Purpose of the bank guarantee
There are several purposes for this type of endorsement. On the one hand, the guarantee a loan, which otherwise could not be granted due to a lack of goods or money to respond by the endorsed. It is also used to support companies to third parties. In addition, as we have indicated at the beginning, these guarantees are increasingly are more prevalent in rental contracts.
The bank guarantee application
Customer and originator of the guarantee will have to be responsible for having confirmed a line of risk of foreign trade which will be used by the amount of the guarantee. Then, the client will have to focus on important issues such as the duration of the guarantee, the maximum amount payable and payment requirements, obligations subject to the endorsement or the data of the originator.
Delivery of the guarantee to customer
After these steps and based on the conditions, the Bank will issue the guarantee or warranty. Subsequently the Bank delivered the endorsement to the recipient, always with the agreed conditions.
Commissions of the Bank
In the case of the Bank surety, this will take part in the operation. The entity will charge the Banking Commission by signing the contract and keep the guarantee. The amount to be charged is collected in the Bank of Spain. Thus, they will be Commission study, which is a percentage of the amount requested that have a minimum per transaction. In addition, also be charged fee, the amount of the guarantee, as well as the Commission for risk, an extra on the amount but also based on factors such as time, type and risk of the endorsement.
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Title : What is a Bank Guarantee
Description : It is becoming more frequent to observe the figure of the bank guarantee in certain contracts; and it is that if this type of collateral ...
Description : It is becoming more frequent to observe the figure of the bank guarantee in certain contracts; and it is that if this type of collateral ...