See the following guarantee letter samples here. There are two types of guarantee letter samples. One is personal guarantee letter and the latter is bank guarantee letter.
Personal Guarantee Letter Samples
Letter of Guarantee
To Ambassador/Consul-General of South Africa
- Expenses for the applicant’s stay in South Africa.
- Return travel expenses.
- Compliance with South Africa Laws and Regulations.
Bank Letter of Credit Samples
A bank Letter of Credit is generally issued by a bank upon the request of a buyer or an importer. The buyer needs this letter to fulfill the requirement made by the seller or the exporter.
Purpose of a Bank Letter of Credit
Primarily, the purpose of this letter is to guarantee or to ensure that the seller is paid in any case. If the buyer has defaulted, the seller may claim the letter of credit that has been opened by the buyer.
The Reasons of a Letter of Credit
There are a few reasons that the seller requests a letter of credit from the buyer:
- The seller is a new company or supplier that is not confident in offering trade credit to the buyer.
- The buyer is a new company. Therefore, it does not have enough credit information and history for the seller. Consequently, the seller doubts the buyer’s ability to pay.
How to Get a Bank Letter of Credit
The buyer can apply to its bank for a letter of credit. The procedure and requirement is similar to that of applying for any other loan:
- Has an account in the opener bank.
- Signs a credit agreement.
- Provides collateral assets.
BANK OF WEST AMERICA
999 Beach Drive, San Diego, CA 92113, USA (1) 456789 email@example.com
222 MAIN STREET
SAN DIEGO, CA 92113
June 04, 2022
This letter is to notify that Bank of West America will irrevocably honor and guarantee payment of any checks written by Peggy Mansfield up to the amount of US $ 200,000 and draws on account 77777777.
This guarantee letter is for the purpose of our customer purchasing computer’s accessories from Chang Ltd in Shanghai, China. This letter of credit is valid until June 30, 2022.
Brian Mercury Peggy Mansfield