A bank guarantee is a type of legal document where the issuing bank or financial institution guarantees that if the certain borrower fails to pay the loan on time or defaults in performing the terms & conditions of the contract, then the losses will be covered by the bank or FI. A bank guarantee not only enables the borrower to purchase equipment, machinery, or raw materials for completing their trade transactions but also assures sellers that they would be paid on time. But do you know that a bank guarantee can also be used as a project guarantee to manage the risks and safety of a trade deal that involves long-term projects like construction contracts? Read more: https://www.emeriobanque.com/blogs/how-to-use-bank-guarantees-for-long-term-project-contracts