A Bank Guarantee is the ultimate promise from a financial institution to ensure a financial obligation is met, even if one party decides to play hide-and-seek with their contractual responsibilities.
The likelihood that one party in a transaction will default on its contractual obligations, turning an expected trade into an unexpected trip to the courtroom.
A performance bond is like a financial superhero ensuring that everyone sticks to their agreementsโfaster than a speeding contractor, more powerful than an errant supplier!