Bank guarantees are not limited to business customers; individuals can apply for them as well. However, businesses do receive the vast majority of guarantees. In most cases, bank guarantees are not particularly difficult to obtain.
To request a guarantee at ABC Capital Bank, the account holder contacts the bank and fills out an application that identifies the amount of and reasons for the guarantee. Requirements for Bank Guarantee
How Bank Guarantees Work and Who Uses Them
Bank guarantees are often part of arrangements between a small firm and a large organization—public or private. The larger organization wants protection against counterparty risk, so it requires that the smaller party receive a bank guarantee in advance of work. A variety of parties can use bank guarantees for many reasons: