what is the bank guarantee of a seller to buyer?

iam purchasing manager of a company and want to purchase some software from an over seas company in an agreement of 25% advance payment. so please tell me the complete form of bank guarantee that i should get from the seller.

One Reply to “what is the bank guarantee of a seller to buyer?”

  1. Bank Guarantees are 1) Advance Bank Guarantee 2) Performance Bank Guarantee . Advance Bank Guarantee (in your case) You have to obtain (25% advance amount ) an advance Bank guarantee from the seller.
    Reason : a) to protect your money.b) any failure in the commitment of supply from the other side after paying 25% advance. It should be endorsed by the Banker from the other side then only its valid.
    Reason: In case of any legality arises out of failure in this transaction the banker has to come as an arbiter to pay back your 25% in case failure of the contract.

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