Bank Guarantee

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Dictionary Says

Definition of 'Bank Guarantee'

A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.
Investopedia Says

Investopedia explains 'Bank Guarantee'

A bank guarantee enables the customer (debtor) to acquire goods, buy equipment, or draw down loans, and thereby expand business activity.

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