Letter Of Guarantee

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Dictionary Says

Definition of 'Letter Of Guarantee'

1. A type of contract issued by a bank on behalf of a customer who has entered a contract to purchase goods from a supplier and promises to meet any financial obligations to the supplier in the event of default.

2. A document issued by a bank on behalf of a call writer guaranteeing that the writer owns the underlying asset and that the bank will deliver the underlying securities should the call be exercised.
Investopedia Says

Investopedia explains 'Letter Of Guarantee'

A letter of guarantee often helps firms conduct business with parties they would never normally get the chance to deal with. Many suppliers will often choose to do business with customers that have a letter of guarantee because it eliminates the risk that they will not receive the appropriate payment for the goods that they are selling.

Additionally, call writers will often use a letter of guarantee when the underlying asset of a call option is not held in their brokerage account.
Search results for

'Letter Of Guarantee'

  • What's the difference between a bank guarantee and a letter of ...

    http://www.investopedia.com/ask/answers/06/202005.asp
    A bank guarantee and a letter of credit are similar in many ways but they're two
    different things. Letters of credit ensure that a transaction. ...

  • 5 Ways To Buy A Used Car - Investopedia.com

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    ... check, a US Postal Service or commercial money order, Traveler's checks, a personal
    or company check that is accompanied by a bank letter of guarantee, or by ...

  • 5 Ways To Buy A Used Car Slideshow | Investopedia

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    ... check, a US Postal Service or commercial money order, Traveler's checks, a personal
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  • 5 Ways To Buy A Used Car Slideshow | Investopedia

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    ... check, a US Postal Service or commercial money order, Traveler's checks, a personal
    or company check that is accompanied by a bank letter of guarantee, or by ...

  • 5 Ways To Buy A Used Car Slideshow | Investopedia

    http://www.investopedia.com/slide-show/5-ways-to-buy-a-used-car/bottom-line.aspx?lastSlide=1
    ... check, a US Postal Service or commercial money order, Traveler's checks, a personal
    or company check that is accompanied by a bank letter of guarantee, or by ...

  • 5 Ways To Buy A Used Car Slideshow | Investopedia

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    ... check, a US Postal Service or commercial money order, Traveler's checks, a personal
    or company check that is accompanied by a bank letter of guarantee, or by ...

  • 5 Ways To Buy A Used Car Slideshow | Investopedia

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    ... check, a US Postal Service or commercial money order, Traveler's checks, a personal
    or company check that is accompanied by a bank letter of guarantee, or by ...

  • 5 Ways To Buy A Used Car Slideshow | Investopedia

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    ... check, a US Postal Service or commercial money order, Traveler's checks, a personal
    or company check that is accompanied by a bank letter of guarantee, or by ...

  • 5 Ways To Buy A Used Car Slideshow | Investopedia

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    ... check, a US Postal Service or commercial money order, Traveler's checks, a personal
    or company check that is accompanied by a bank letter of guarantee, or by ...

  • MELA Gets A Surprising "Yes"

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    ... Prior to this approvable letter, the agency had been unusually adamant in ... Remember,
    approval does not guarantee favorable reimbursement, nor does it guarantee ...

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