When to apply bank guarantee? If you are getting ready for: participating in the tender for performing works, providing services or supplying goods; assuming contractual and/or payment liabilities; receiving advance payment for complying with the contractual obligations; assuming contractual obligations to ensure the quality of the performed work, service provided or the goods supplied; importing goods under the condition to pay in cash usually being obliged to apply for the provision of credit for making the payment.
The documentary letter of credit is the written obligation of the bank, which is issued according to the instruction of the buyer (importer) for the benefit of seller (exporter), where the buyer (importer) undertakes obligation to pay the seller (exporter) an amount against the documents submitted in line with the requirements set forth in the letter of credit.
