Guarantee Bank: International Leasing Trust

Trust Guarantee bank State

The Commonwealth Bank of Australia has been the main pillar of the Australian economy for a long time. It is the entry point for any of the banking services that wants to do business in the country. One of the main features for which the Commonwealth Bank is known all over the world is for its guarantee banking services. It has been one of the first banks to introduce this service and after that many have been its followers. To begin with you need to know the basic definition of guarantee banking. It means a type of guarantee in which a bank or other lending organization promises to repay the liabilities of a debtor in the event where the debtor is unable to. In most of the cases it is taken by those who are into some kind of business or the other and they basically take it as a security before taking any kind of credit from the market. In most of the cases these bank guarantee enables the customer to acquire goods, or draw down loans and thereby expand their business activity. It is the best possible option that you can avail if you do not want to risk your money in the market.

This particular product has been very popular in Australia as well as in the United States. The maximum number of responses came from those who are into business. The bank guarantee is given to you in lieu of some charges which will be deducted at regular intervals from your bank account. In case of the Commonwealth Bank it is preferred that you pay the charges directly from your account from the net banking services that they have in place.

But before you opt for this particular option it is important that you know about some of the common facts about these guarantee letters. They are as follows:

  • The letter must be an official bank Letterhead.
  • The bank must state in the letter that “They Guarantee the Payment of the Check Being Presented”. It is not acceptable if it states that the credit limits or balance of the individual company.
  • Letter must state the name of the individual or company for whom the guarantee is being stated and the check must have the same name printed on it.
  • It should contain the account number on which the check is to be drawn and the check should match this same account number.
  • The letter should also contain the check number which is being used at the time of making the purchase.
  • The letter should state an ending.
  • It must be mentioned the maximum amount for which the bank will guarantee and the check must not be written more than this guaranteed amount by the bank.
  • The letter must be signed by the representative of the bank. It is appropriate if it is signed by the authorized signatory of the bank.

Keeping all this things in mind you can look out for a bank guarantee. It is very much essential that you do a detailed research before applying for one in order to get the best possible deal that is available. More than anything else this will help you to grow your trade in a much more secured way than before. So, what are you waiting for, go though the websites, visit the branches and see what best is in offer for you.