In international economic activities, having an intermediary financial institute between the trade partners is essential. If having a global customer and supplier base is an opportunity hard to miss, international trade risks are increasing. We need to consider the relations with clients and suppliers, understanding their reliability, solvability, their field and their position in the market; evaluating risks linked to regulations, habits and customs of the countries you are operating in—lastly, the risks related to trading in foreign countries, like political risks or different currencies.
That is why it is essential to establish strategies that allow minimizing the risks. A bank guarantee creates trust. It demonstrates your reliability if something goes wrong: with a bank guarantee, a financial institute is committed to performing a service to the beneficiary; if one of the parties does not fulfil its obligations, it is committed to paying if the conditions agreed are not fulfilled.