How a Bank Guarantee can Elevate your Company’s Credibility
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 please read on.
Bank Guarantees and Company Credibility
Using a Bank Guarantee in a trading environment will enhance your company’s credibility. It shows commitment to deliver to a counterparty or trading partner and it shows creditworthiness – representing trust shown in you by your banker. A Bank Guarantee also shows your company is run on a sound basis. These are accolades certain to impress any current or new trading partner.
Exploiting the Global Market with Bank Guarantees
The Bank Guarantee along with Letters of Credit underpin international trade transactions. Without these banking instruments international trade could grind to a halt. A Bank Guarantee enables companies to purchase goods on a global basis and takes away the purchaser’s risk of not being paid.
A Bank Guarantee can be issued and paid in varying currencies. This of course ensures contracts can be negotiated on a global basis. It is a globally recognised legal transaction where a bank undertakes to pay the beneficiary in event of default.
Important – Other Bank Guarantee Benefits
There is one other major role a Bank Guarantee can play in your business, improving cash flow. If your business struggles with cashflow, then a Demand Bank Guarantee could be your saviour. This guarantee is specifically issued for loans and lines of credit.
This Bank Guarantee is written in such a way that banks and lending institutions can use the instrument as security for a loan. The format contains precise verbiage, and the guarantee is governed by ICC Uniform Rules for Demand Guarantees, (URDG 758).
Conclusion
For those companies not yet aware of the Bank Guarantee benefits I would suggest that you get in touch and learn how these can be beneficial to your business. As you can see from the above, Bank Guarantees are a major factor in international and national trade. In today’s markets it is imperative you stay one step ahead of the competition.
It is obvious that using a Bank Guarantee will enhance a company’s reputation in the national and global markets. The credibility that comes with using a Bank Guarantee is worth its weight in gold.
A Bank Guarantee can inevitably help you beat the competition. A Bank Guarantee can also provide much needed cash flow. Please don’t hesitate, find out about Bank Guarantees today.