As a financial institution, banks of course have a number of facilities and facilities for their customers to carry out various kinds of financial transactions. All of these things are intended to assist and ensure the smooth running of various financial transactions that will be carried out by Although basically, each bank will apply a number of different policies, each bank certainly has a standard policy that becomes a reference in the services they provide.
Various service facilities provided by this bank, then become one of the separate points for customers Every customer wants maximum and adequate services for all their banking needs, that is why it is very important for banks to have a number of policies as well as adequate facilities in their services.
Of Bank Guarantee Definition
Bank Guarantee The High Number Of Transactions And Also The Need For Banking Services For Customers, Make Banks Try To Provide Various Kinds Of Facilities In Their Banking Services. One That Is Quite Widely Used By Bank customers is a bank guarantee service. This service is widely used by business people and also parties who have a cooperative relationship between one company and another.
A Bank guaranteeIs a written guarantee issued or given by the bank to its customers. In this case the bank acts as a guarantor, while the customer is the guarantor. contain elements of guarantee including bank guarantees, aval, endorsement, standby L / C, and various other things that contain elements of guarantee in it. However, the definition of guarantee in this case is other than certain banking facilities, such as: L / C for import, domestic L / C, and shipping guarantee.
The provision of bank guarantees by the bank to its customers is intended to be a written guarantee in fulfilling a certain obligation, where if one day the guaranteed party (the customer) is unable to fulfill all of its obligations in accordance with the agreement it has made with the other party, the party the bank as the guarantor will take steps to provide the guarantee to the guarantee recipient.
The above is certainly a step that will greatly help 2 parties to cooperate or make a business agreement that has a "middle way" "Which ensures that the agreement can run well and in accordance with the initial agreement that has been made. With reference to the definition above, in the issuance of bank guarantees there are always 3 interested parties involved, namely:
Guarantor Party
In this case the guarantee is the bank, in which the bank will issue a guarantee to its customer who has an interest in the other party.
Guaranteed Party
The guaranteed party is a customer who submits and makes a guarantee request to the bank, where the customer will ask for the issuance of a bank guarantee for the benefit of his agreement with another party.
The Receiving Party of Guarantee
The guarantee recipient is a third party who will receive the guarantee provided by the bank because of an agreement made by the guarantee recipient with the guaranteed party as the bank's customer. The guarantee recipient has the right to receive guarantees for default which at any time may This then became the reason for the issuance of the bank guarantee. This then became the reason for the issuance of the bank guarantee.
To issue a bank guarantee, the guaranteed party (the customer) must have a deposit at the bank that provides the guarantee, usually this deposit can be in the form of a deposit or demand deposit whose amount must at least equal the amount of the security deposit to be issued In the issuance of a bank guarantee, the bank as the guarantor will ask for a provision from the guaranteed party.
Bank Guarantee Benefits
If you look at the definition of a bank guarantee above, then of course we already have an idea Of the benefits of this. Bank guarantees will greatly help the occurrence of a collaboration between business people and also those who have cooperation interests with various parties in the work they do. Some examples of the benefits of a bank guarantee can be seen below ::
A. Bank guarantee in a tendered construction project
Project development will certainly require a very large amount of funds, where all these costs must be available even though they have not been used completely because this will be a guarantee for the project owners in giving the tender The bank guarantee will be a consideration for the project owner, that the contractor company has the ability and also the bona fide to complete the project very well.
In this case, usually, the bank guarantee provided This guarantee can be divided into several types, namely: is in the form of a bid bond, which is a bank guarantee that is used as a condition for participating in a tender.
Advance Payment Bond, this is a guarantee given by the bank for the payment of an advance payment after winning a project.
Performance Bond, which is a bank guarantee for the implementation of a project.
Retention Bond, is a guarantee for project maintenance after completion .
B. Guarantee In Export-Import Agreement
In This Case, The Bank Will Usually Issue Guarantees For Goods Whose L / C Has Not Been Fully Paid By The Party Conducting The Business Agreement.
Bank Guarantee In Various Business Agreement Affairs
As with other banking services, the bank guarantee is also intended as a service that will assist and provide convenience for customers in carrying out their various financial transactions. Bank guarantees are guarantees that will be a guide for customers in completing various business agreement interests that they do. The use of a bank guarantee will greatly facilitate and provide a sense of security for both parties who enter into the agreement.