Presentation by Inga Xu CPA from Nexa Finance

A Bank Guarantee is a financial instrument issued by a bank to guarantee a customer’s payment obligations. It assures the beneficiary that the bank will cover the losses if the applicant fails to fulfil their contractual or financial commitments. This provides security in various business transactions, trade agreements, and project undertakings.

On the other hand, “100% lending” refers to a financing scenario where a lender provides the entire amount required for a project or purchase, eliminating the need for the borrower to contribute any upfront capital. This approach is often seen in real estate and large-scale investments, allowing individuals or businesses to proceed with ventures without a significant initial financial outlay. However, such arrangements may pose risks and require careful consideration to ensure financial stability and responsible lending practices.