A performance bank guarantee provides a secure promise of compensation of a set amount in the event that a seller does not meet delivery terms or other provisions in the contract. The purpose of this sort of guarantee is to solidify the contractual connection between a seller and buyer. In general, a bank guarantee is an irrevocable duty the bank has to give out a predetermined dollar value if the party represented by the bank fails to meet the terms of a contract.Continue Reading
Most banks offer several different types of guarantees to their clients and parties with which their clients have entered contracts. One of these is the payment guarantee, which gives the seller a guarantee that the buyer is going to fulfill all obligations for payment as established by the initial contract.
An advance payment guarantee applies when contracts specify the completion of an advance payment to the seller. It also guarantees that any advance payment reverts back to the buyer, should the seller fail to fulfill any of the obligations regarding services or goods.
A tender guarantee, also known as a bid bond, is a part of participating in international tenders. One example would cover the expenses of organizers when one of the participating parties pulls back its bid or refuses to take the set offer.Learn more about Personal Banking
A buy-sell agreement is a contract that stipulates the transfer of one party's business interest to another party if a certain trigger event occurs in the seller's life. Trigger events include the seller retiring, becoming disabled or dying.Full Answer >
The general steps of sending money through a bank wire transfer include obtaining the recipient's bank name, bank ABA routing number, bank account number and delivery instructions; contacting the bank to ask about the specific process of sending a wire transfer; and filling out the form the bank provides or completing the process online if applicable, suggests About.com. If you're the recipient, call your bank to know about the correct ABA number to use for the transaction.Full Answer >
One tip for choosing a bank is to consider all the services needed and look for a bank that offers the best deal in terms of benefits and service packages, suggests Bankrate. Some other tips include checking whether the bank is secure and a member of the Federal Deposit Insurance Corporation and considering the location of bank branches for convenience, notes Investopedia.Full Answer >
Features of an online bank statement include a list of all transactions on the account over a set period of time (typically on a monthly cycle), details about specific transactions and access at any time of the day. Many banks also allow customers to view real-time lists of transactions until they generate the monthly account statements, which are then also available as downloadable PDFs.Full Answer >