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[Music] in this video we are going to see how bank guarantee works for contractors [Music] bank guarantees are the promise given by a bank on behalf of a party to assure their commitment towards the counterparty bgs protect both parties in a contractual agreement from credits risk for example if a developer and a contractor enters into a contract to build a multi-storey building then the developer may demand a bank guarantee from contractor this bank guarantee proves the financial bona fide and capability in case if the contractor fails to oblige the terms the developer can notify the bank which then pays the developer the amount specified in the guarantee since bg proves the contractors commitment having bank guarantee increases the chance of availing worthy projects and trade deals do you require bank guarantee on your companys behalf without blocking cash funds contact us today we are the international bank guarantee providers in dubai email us support bw tradefinance.com call us