A bank guarantee and a letter of credit are both promises from a financial institution that a borrower will be able to repay a debt to another party, no matter the debtor's financial circumstances.

A letter of guarantee constitutes a strong security ... the more important the content and the time of submission. If there are lapses the bank is not obliged to pay. The issuing bank’s ...

A bank issues a letter of credit to guarantee the payment to the seller, essentially assuming the responsibility of ensuring the seller is paid. A buyer must prove to the bank that they have ...