Bank Demand Guarantee and Standby Letter of Credit as collaterals in International Trading Operations
Bank demand guarantees have become an established part of international trade. This financial instruments are often used in trade financing when suppliers, or vendors, are purchasing and selling goods to and from overseas customers with whom they don't have established business relationships. The instruments are designed to reduce the risk taken by each party. In this sense bank demand guarantees are similar to standby letters of credit. Similarities and differences among them are the subject of this paper.
bank guarantee, demand guarantee, contract, security claims, standby letter of credit
IJME introduces peer-review from its first Edition onwards. The researchers submitting their papers for publication should review atleast one technical paper from their domain. The manuscript also undergoes mandatory procedural review with IJMES review and scholar panel.