By Suisse Bank Plc | Digital Offshore Banking

bank guarantee is a promise from a bank to cover losses if a borrower defaults on a loan. It provides security to the lender, ensuring in case of non-compliance. Commonly used in real estate trade, and construction, it enhances trust and facilitates business transactions.

A standby letter of credit (SBLC) is a financial guarantee issued by a bank on behalf of a client, ensuring payment to a beneficiary if the client fails to meet contractual obligations. It's commonly used in international trade to reduce risk and enhance trust between parties.

A Demand Letter of Credit is a financial instrument used in international trade, ensuring that payment is made to the seller upon of specified documents. It provides security for both parties, as the buyer's bank guarantees payment, reducing risk in transactions.

Proof of Funds (F) is a document that verifies an individual or company's financial capability to complete a transaction. It typically includes bank statements or letters from financial institutions, demonstrating available for purchases, investments, or other financial commitments.