Commercial / Corporate

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Letters of Guarantee
Letters of Guarantee

A letter of guarantee is a document of guarantee issued by the bank on behalf of a real person or legal entity living in Turkey or abroad addressed to a real person or legal entity guaranteeing payment for the amount stated in the letter when/if the customer fails to fulfill an obligation, deliver goods, pay a debt, etc.

Depending on the type of business, letters of guarantees may be issued as listed below,

  • as temporary, definite, advance payment or independent;
  • in foreign currency, foreign-currency indexed, or in Turkish Lira;
  • for a definite or indefinite period of time.
Letters of Guarantee
Advantages
Letters of Guarantee
Advantages
  • A payment guarantee from a reliable bank gives the customer prestige and ease, thus increasing their business volume and profitability.
  • It ensures the customer will fulfill their obligations under the guarantee of a bank.