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Cash Backed Bank Guarantees

Key Facts

Cash backed bank guarantees.

Even though the term is commonly used in conjunction with a Bank Guarantees it is a completely irrelevant.

The term cash backed when used in conjunction with a Bank Guarantee is a complete irrelevance. When a bank issues a Bank Guarantee it is a promise to pay in accordance with verbiage contained within the format, and will accordingly honour their obligation despite any underlying security they have obtained from the provider.

The term cash-backed is usually used by those individuals or companies who may not have full knowledge of the bank guarantee market and they should be approached with caution. If you wish to know more details about bank guarantees, please get in contact with one of our experts.

If you have any further questions on this or any other subject related to bank guarantees, then you can search our frequently asked questions where you will hopefully find the answer you are looking for. Alternatively you can ask us a question and we will answer it for you.


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