Definition
An irrevocable undertaking by a bank to pay a beneficiary a specified sum if the bank's customer fails to meet a contractual obligation. In trade it is used for performance, advance-payment or bid security. South African banks issue guarantees subject to South African Reserve Bank exchange control approval where the beneficiary is offshore.
Frequently asked questions
What is Bank Guarantee?
An irrevocable undertaking by a bank to pay a beneficiary a specified sum if the bank's customer fails to meet a contractual obligation. In trade it is used for performance, advance-payment or bid security. South African banks issue guarantees subject to South African Reserve Bank exchange control approval where the beneficiary is offshore.
Which glossary terms are related to Bank Guarantee?
Bank Guarantee is a procurement term in the South African import/export industry. Related terms in the same area include Advance Payment, CSD (Central Supplier Database), Designated Sectors, Documentary Collection, Forex Hedging — each has its own plain-English definition in the TradeCaravan glossary.