GUARANTEES

Advance payment guarantee: 

Is typically used to underpin or guarantee the performance of a commercial contract, such as a contract for the sale of goods (where the buyer is the beneficiary).

Performance guarantee:

Means any guarantee by any person of the performance of the obligations of another person (other than obligations in respect of payments, indebtedness or other monetary obligation of any kind) under contracts of such other person to design, develop, manufacture, construct or produce products or production facilities (and related non-monetary obligations) or to provide services related to any of the foregoing.

Bank guarantee:

Means a lending institution ensures that the liabilities of a debtor will be met. In other words, if the debtor fails to settle debt, the bank will cover it.