Helps to ensure that customers meet their performance obligations under contracts with their clients.
- It’s a bank undertaking hence must be secured
- Guarantees can be both local or foreign
- Lasts longer, simple requirements
- Client obtains credit hence easing increase in liquidity
- Immediate compensation in case of default
- Guarantee credit facility or cash margin
- Customer request duly signed and format where available
- Bank’s counter indemnity form duly signed, sealed where applicable, witnessed and stamped.