Differentiating A Bank Guarantee From A Letter Of Credit
The two differ although they may sound similar. A bank guarantee in city Dubai refers to a written commitment which is usually issued by a bank when requested by one of various parties in a transaction. The bank therefore promises to pay a beneficiary a sum of money that is specified for cases that are also specified in the agreement. The lender assures payment of the cash. This is usually in the case that the terms defined in the agreement are not met.