Entering the business world? You might want to know about letter of guarantee!

Letter of Guarantee is an irrevocable undertaking issued by banks and financial institutions upon the instruction of the customers (the applicant). It guarantees payment of any sum of money to a beneficiary upto a maximum amount determined in the guarantee that may be demanded by that beneficiary   due to nonperformance of the underlying contractual obligation by the applicant. The letter of guarantees are issued every day in every sector, country, industry and trade. In short, any obligation can be secured by the issue of letter of guarantee. The most common types of letter of guarantees include: Tender Guarantees, Performance Guarantees Advance Payment Guarantees, Financial Guarantees,… etc.

One of the most common obstacles companies and investors face while issuing the letter of guarantee is the required fees, which adds up a lot if your company is in start-up mode and doesn’t have enough credit to spend. Another major drawback is the time; it takes days or sometimes weeks to issue, which may affect your business in such a fast-paced world!

The best way to issue your letter of guarantee is to research and explore all the options in the market. A smart option that emerged recently is Al Rabeh Guarantee offered by Finance House. This letter of guarantee requires no processing fees, it will be issued in less than 24 hours and most importantly it is the first letter of guarantee that you can earn interest with and let your money live to its full potential.

Finance House take pride in their constant commitment to provide solutions to support business and investments; and in contributing in achieving the national agenda of the vision of the UAE to become the economic and commercial capital of more than 2 billion people.