There are obvious similarities between a bank loan and a line of credit. In both cases it is a loan from a bank or lender. However, a line of credit can also be obtained from a third-party lender. This is where a lender steps in if the bank refuses their client a line of credit. Here in Switzerland,...

Before going into the details of a Bank Guarantee “lease” (or indeed, a so-called ‘leased’ Bank Guarantee), we should first define a Bank Guarantee. A Bank Guarantee is a Demand Guarantee (or bankers Letter of Guarantee) issued by a bank upon instructions received from their customer. The issuing...

Performance Guarantees and Financial Guarantees  There are two types of Bank Guarantees, Performance Guarantees and Financial Guarantees.  Performance Guarantees – This is a promise by the issuing bank to cover any losses the beneficiary may incur. These losses fall into the category...

There are many requirements for company’s applying for Bank Guarantees. These requirements are dealt with by what is known as Due Diligence. The company requiring the Bank Guarantee will be requested to fill out an exhaustive questionnaire. These questionnaires are usually known as KYC, Know Your...

Is your company struggling to trade in the current financial conditions? Today I will show you how a Bank Guarantee can elevate your company’s credibility and benefit your business. Furthermore, I will show you how a Bank Guarantee can make you a more attractive trading partner. Interested? Then...

There are many benefits from obtaining a credit line from a bank or other lending institutions. But before we embark down this road there is one question, can you gain access to a credit line? Yes, all companies can approach their banks or other lending institutions, however sometimes banks may refuse...