What is a Bank Guarantee? (the easy way to understand what it is)

Our company needs funding of $10M for operations for any individual or any companies that can invest or give loan.

Thus, a well known and established company wanted to provide us with a BG of $10M. What does this mean? As we need direct funding.

You work at a bank and don't know this?! I smell a troll or spam ahead.

Bank guarantee means that the bank opens a written certificate to the beneficiary at the consignor's request. As the guarantor, bank has the responsibilities to handle the debt or obligations instead of the consignor. The rights and obligations of both parties would be prescribed by the contract.

I don't work in a bank?

And you don't answer my question.

Quote:

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Originally Posted by aerybritney

I don't work in a bank?

And you don't answer my question.

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Is this homework?

I told you what it is. Or Google for your own preferred definition.

Any business that would be dealing with financial numbers that large would or should know what this is already. I think its a reworded homework question.