What do you mean by bank guarantee and types of Bank guarantee

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A bank guarantee is a promise from a bank to cover the losses of a borrower if they fail to meet their obligations. There are several types of bank guarantees.

A bank guarantee is a form of financial security provided by a bank to a borrower.
It is a promise from the bank to cover the losses of the borrower if they fail to meet their obligations.
Types of bank guarantees include bid bond, performance bond, advance payment guarantee, and standby letter of credit.
Bid bond guarantees that the bidder will honor the terms of the bid if they are awarded the contract.
Performance bond guarantees that the contractor will complete the project as per the terms of the contract.
Advance payment guarantee ensures that the advance payment made by the buyer will be returned if the seller fails to fulfill their obligations.
Standby letter of credit is a guarantee that the bank will pay the beneficiary if the applicant fails to fulfill their obligations.

What do you mean by bank guarantee and types of Bank guarantee

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