IMPACT OF BANK GUARANTEES ON INDIAN INDUSTRIAL OPERATIONS

Volume 9 No 3 (2011)

Mr. Ashok S. Luhar

Abstract

One of the greatest non-fund-based financial tools for purchasing and selling goods in both domestic and foreign trade is the bank guarantee. It is crucial for new business owners who wish to purchase and sell their products on credit without taking any risks. A bank guarantee is a formal agreement that states the bank will reimburse the seller for the full amount owed if the buyer does not pay the seller on time. This simple article uses an appropriate case study to demonstrate the function of bank guarantees in Indian industries.

Keywords

Bank Guarantee, Alternative Sources of Finance, Trade Finance.

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