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Meaning
A guarantee given by a bank to a third person, to pay him a certain sum on behalf of the banks customer, on the customer failing to fulfil any contractual or legal obligations towards the third person.
Benefits as a Beneficiary
Increase security of trade transaction with your counterparty, Limit the risk of counterparty's default against contractual terms and conditions, Efficiently collect your receivables with the use of the guarantee, Quickly receive payment of the claimed amount regardless of the counterparty's financial situation, also without delay, which is usually involved with court proceedings, The Bank will take the counterparty risk from you.
Benefits as a Principal
strengthen the credibility of your business as seen by the counterparty thanks to the renown of Bank Millennium SA as the guaranteeing bank, ensure further effective cooperation with your counterparty as you will not have to commit your own money to secure the transaction, maintain financial liquidity, we will agree with you the amount of the guarantee depending on the terms and conditions of your contract with the guarantee beneficiary, get professional assistance and advice from your Biznes Advisor when submitting documents and assessing the agreement, which will underlie the guarantee and also when verifying any potential claims under the guarantee.