Do You Know Everything About A Lease Bank Guarantee

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THE HANSON GROUP OF COMPANIES
www.thehansongroupofcompanies.com
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Do You Know Everything About A Lease Bank
Guarantee
The lease bank guarantee does not have a specific
legal development, but has been configured by
scientific doctrine as a 'signature loan'. These
signature loans are legal mediation deals in the
granting of credit through which Banks and
Savings Banks guarantee the commitments of their
clients without advancing funds. Therefore, the
bank guarantee is a modality of the guarantee
contract, or commercial guarantee by virtue of
which a bank, guarantor, guarantees the
fulfillment of an obligation contracted by its
client, guaranteed, with respect to a third
party, the beneficiary.
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For a company, a bank guarantee or Standby Letter
of Credit Monetization has great advantages,
since with the guarantee, customers and suppliers
have greater confidence in your company. Nowadays
it is vital to have a guarantee since a lot of
confidence has been lost in the agreements that
are signed with third parties, due to the
financial crisis that has left many agreements
unpaid, and as a consequence of this, many
companies have had to close.
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The Standby Letter of Credit Monetization
contract by which we commit when we sign a bank
guarantee is nothing more than guaranteeing to a
third party that we will comply with the payment
obligation. This contract, like any other, has an
expiration or expiration thereof. What the client
or supplier is looking for when requesting a
guarantee from a company is to guarantee payment
for the product or service that is exchanged in
the contract. In the event that the guarantee is
executed, the client or supplier is sure that
they will receive the amount since the financial
institution is in charge of responding and has
the assets and immediate liquidity to do so.
Therefore, requesting this type of guarantee
ensures that the payment is made.
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WHAT ARE THE THINGS THAT ARE INVOLVED IN GETTING
A LEASE BANK GUARANTEE?
Guaranteed the debtor in this type of contract,
that is, the person who requests the guarantee
from the financial institution. Guarantor the
financial entity that financially supports the
guaranteed. In the event that the guarantor does
not meet the debt with the third party, the
guarantor is the one who responds. The
beneficiary is the creditor of this type of
contract. He is the one who can execute the
guarantee and demand that the bank complies with
the guaranteed obligation. Letter of
endorsement it is the wording of the obligations
and rights that arise from the signing of this
financial contract.
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Guaranteed amount it is the amount of money that
is guaranteed. Guarantee period it is the time
in which the guarantee is valid. Execution
period it is the time available to the
beneficiary of the bank guarantee to claim such
compliance from the financial institution. Regist
ration number bank guarantees must be registered
in a special registry of the financial
institution, in order to record the issue and
characteristics of the guarantee.
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