Know what is a â€œBank Guaranteeâ€ (BG). There are two types of guarantee. One is direct and another one is indirect.
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Simply defining, it is a guarantee given by the bank or any other financial institution where it states that, if the person or organization who is taking the money fails to repay the debt, then the bank will cover for the debtor.
On the other hand, to boost the economy, these steps might be required to more or lesser extent.
Acquiring this type of guarantee requires various steps and banks do check upon various factors before issuing a guarantee.
It should also be mentioned that bank requires knowing how long does the guarantee is needed for, what amount is needed, for how long the amount is needed, beneficiary details along with any other information that bank may state as important.
So now that you know what is a “Bank Guarantee” (BG) you should start investing on the same.