A bank letter of guarantee refers to a written guarantee document issued by a bank on the client's application, once the applicant fails to repay the debt or fulfill the agreed obligations in accordance with the contract it has signed with the beneficiary, the bank shall perform the guarantee responsibility. Bank letter of guarantee business features 1. Bank credit as a guarantee, easy to accept for the customer; 2. Letter of Guarantee is issued based on the business contract, but not attached to the business contract, it is a legal document with independent legal force. When the beneficiary claims a reasonable claim under the letter of guarantee, the bank shall be liable for payment, regardless of whether the applicant agrees to make the payment or the actual facts of the performance of the contract. That is, the letter of guarantee is an independent commitment and is basically a documentary transaction business. Bank Letter of Guarantee Type 1. Guarantee of processing trade tax; 2. Guarantee of customs duty; 3. Tender letter of guarantee; 4. Performance letter; 5. Prepayment letter of guarantee; 6. Quality letter of guarantee; 7. Maintenance Guarantee. Financing letter and non-financing Letter financing letter refer to the letter of guarantee that is responsible for the Financing Behavior of the letter of guarantee applicant. The purpose of issuing a letter of guarantee is to provide financing. It mainly includes: Loan letter of guarantee, securities letter of guarantee, financing lease letter of guarantee, deferred payment Letter, compensation trade letter of guarantee paid in cash, and credit line letter of guarantee; A non-financing letter is a letter of guarantee that is responsible for the non-Financing Behavior of the letter of guarantee applicant. It mainly includes: bidding letter of guarantee, performance letter, prepayment letter of guarantee, maritime letter of guarantee, instant Payment letter, duty letter of guarantee, litigation letter of guarantee, etc. Bank letter handling procedures 1. The applicant must fill in the letter opening application and sign the seal; 2. Submit the background information of the letter, including the contract and approval documents of relevant departments; 3. Provide the relevant letter of guarantee format and stamp it with the official seal; 4. Provide the enterprise's recent financial statements and other relevant evidentiary documents; 5. Implement the guarantee accepted by the bank, including deposit payment, pledge, mortgage, third party credit guarantee, or warranty by mortgage or other means, and credit opening; 6. The Bank may open a letter of guarantee after reviewing the applicant's credit information, performance ability, project feasibility, letter of guarantee terms and guarantees, pledge or mortgage information.
