payment guarantee
Promised fund transfer
A payment guarantee is a formal commitment ensuring that a debt or obligation will be paid.
Banks issue payment guarantees to assure sellers they'll receive funds even if the buyer defaults.
The guarantee shifts risk from the creditor to the guarantor: The contract required a payment guarantee from a major bank.
Common in international trade and large transactions where parties need assurance beyond a handshake.
- letter of creditBank-backed payment promise
- surety bondThird-party payment guarantee
- checkOrder to pay
- escrow accountNeutral fund holding
- credit insuranceCoverage ensuring debt repayment
promissory note · contract law · iron-clad contract · enforceability · fraud prevention · co-signer · credit scoring · fiduciary duty · bill · obligations · receipt · warranties · pen · statutory requirements · dispute resolution · paper · seal · cash
payment guaranteepayment default
Failure to repay debt
non-payment · credit risk · bad debt · insolvency · bankruptcy
payment guaranteemoney-back guarantee
Pledge to reimburse dissatisfied buyers
delivery guarantee · buyer protection · product warranty · service warranty · warranty
payment, guarantee, paying, payer, payers, payee, payees, payable, repaying