What does the customer get from a bank guarantee
Thanks to a bank guarantee, the customer receives almost 100% of the execution of obligations undertaken by the contractor.
That, in the case of a state contract, is especially important, because it is, as a rule, about budget funds. The Contractor, on the other hand, gets the opportunity not to remove working capital from the production process in the quality of the deposit or pledge, which is especially important when performing work with high capital capacity, such as, for example, construction. The bank, in turn, receives income from the guarantee provided, and if the contractor is not fulfilled, rarely suffers real losses, as it has the right to regress in relation to the contractor under the state contract.