Introduction

A written document issued by Bank of China at the request of the borrower to the lender, guaranteeing the borrower will fulfill obligation to repay the borrowed fund.

Category

Financing guarantee include: loan guarantee, overdraft guarantee, securities issuance guarantee, and credit line guarantee.

Functions

Facilitate financing for the applicant.

Features

1.Solve the problem of mutual mistrust between both parties of a transaction. With good reputation, Bank of China involves in the transaction and acts as a guarantor to promote smooth transaction by providing guarantee for the parties.

2.Enhance borrower's creditworthiness and facilitate its financing.

3.Lower financing cost.

4.Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid and reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.