E-Why Is Letter Of Guarantee Used?

Guarantee Parties

The purpose of e-guarantee letters is for the beneficiary to guarantee an action against the addressee and to provide collateral in return. The beneficiary of this guarantee makes an application to the bank and asks him to be a kind of guarantor. The bank gives the person an e-letter of guarantee. The E-Guarantee process, which is often used especially in commercial relations, tenders and Customs, is used for the same purposes as letters of guarantee.

E-Letter Of Guarantee Parties

3 parties are included in the e-letter of guarantee. These are the guaranteeing banks, the interlocutor receiving guarantees and the beneficiaries guaranteeing action.

  • The banks, that is, the guarantors, are indebted against the interlocutor. Although there is no obstacle to the fact that under Normal circumstances real or legal persons are in the state of giving guarantees, it is seen that only banks are in the state of giving guarantees. In other words, the bank that issued the e-letter of guarantee is the guarantor party and in case of distress, the compensation process is covered by the bank.
  • The institution that receives the guarantee, i.e. the addressees, is the party after the e-guarantee application is made by the beneficiary. Through E-letters of guarantee, the interlocutors guarantee themselves by getting assurances that the beneficiaries will meet the necessary conditions.
  • The beneficiary is the person who guarantees the action against the addressee and makes the e-guarantee application. Beneficiaries, who may be a real person or legal person, are the person to whom the bank will apply for compensation. E-whether the risk contained in the letter of guarantee is experienced and the content connects the beneficiary and the addressee.

E-Use Of Letter Of Guarantee

E-letter of guarantee the places used are the same as the letter of guarantee is usually;

Guarantee of advances received at the start of the work in the tenders,
Payment of taxes, penalties and interest,
Customs,
For the deposit of the leased property,
In transactions such as agency, dealership,
Letter of guarantee is used in areas such as collateral of any debt.
E-Letter of guarantee types and duration
The types of e-letter of guarantee and maturity are parallel with the letter of guarantee. You can make various types of e-letter of guarantee applications from banks according to the institution and the stop where the letter of guarantee will be issued. Types of e-letter of guarantee;

Advance
Passing
Customs
Definite dealership theme
Final purchase of goods
References
E-letter of guarantee is due;

Permanent,
3 months,
6 months,
9 months,
It is offered by banks as 12 months.
Is There A Risk Of An E-Letter Of Guarantee?
The risk factor in E-letters of guarantee is almost nonexistent. There are significant differences between the paper letter of guarantee and the e-letter of guarantee in terms of risk factors. These differences;

E-letter of guarantee can only be displayed between the parties, whereas this is not the case with the paper letter of guarantee. While paper letters of guarantee can be copied and forged, it is not possible to copy and replace the e-letter of guarantee.
E-letters of guarantee are kept on the application. But paper letters of guarantee must be physically stored. In this case, the paper presents the risk of the loss of the letters of guarantee.
When the letter of guarantee passes into the hands of the addressee, it is necessary to check the accuracy of the letter of g

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