We at Acumen Bank provide bank guarantees to all our esteemed customers in the shortest possible time. Bank guarantees act as a promise ensuring that the liabilities of the debtor will be met in a situation when a person is not able to meet the contractual obligations between the applicant and the beneficiary. Due to a bank guarantee, a beneficiary will be able to get a surety and go to the guarantee for the payment.
A bank guarantee enables businesses to grow and expand. Also, they get an opportunity to further bid and make transactions. Bank guarantees is considered a versatile tool that proves to be quite useful. There are different types in which bank guarantees are available. These include performance bond, bid bond, warranty bond, advance payment guarantee, payment guarantee, letter of indemnity, confirmed payment order, and rental guarantee.
Below we are going to have a look at these in brief.
Bid bond is issued typically for bidders who are involved in projects related to construction.
Performance bond is also known as the contract bond and is typically utilized in the real estate industry for making sure a contractor completes the projects assigned.
Advance Payment Bond
An advance payment bond is an agreement which ensures an issuer is liable to make the advance payment to the buyer if the seller defaults to pay.
Warranty bond provides an affirmation that the different defects which are present in a project will be rectified under the warranty period.
Letter of Indemnity
A letter of indemnity provides a guarantee regarding the fulfillment of contractual provisions otherwise the financial reparations will be performed.
Payment guarantee provides an assurance of financial security to the supplier when the applicant does not pay for the supplied goods and services.
Rental guarantees provides an assurance of the payment to a landlord when a tenant defaults while paying back.