Locked Arms Security Group

A Bank Guarantee (BG) is a formal assurance provided by a bank or financial institution on behalf of its customer (the Applicant or Principal), promising to pay a fixed sum of money to a third party (the Beneficiary) if the customer fails to fulfill a specified contractual or financial obligation.

In essence, the bank steps in as a secondary obligor or co-signer for its client's commitment.

This instrument significantly mitigates risk for the beneficiary, allowing them to engage in transactions with a party whose creditworthiness might otherwise be a concern.