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Don’t Issue Blank Cheques!

"A few months ago, I got a call from a friend who is the Global Controller of a small Belgian multinational company. He was seeking an opinion on how to prevent one of their customers drawing on two bank guarantees for a quite significant amount, representing almost 40% of the group’s net annual income! Unfortunately, I couldn’t help him, as the wording of these advance payment and performance bonds matched the terms which should never be accepted by any issuer…."

Experienced treasury professional Patrick Verspecht discusses the risks of issuing bank guarantees and shares seven vital rules to adhere to when doing so.

Key Points

  • Views and best practices when it comes to issuing bank guarantees
  • Trade finance risks
  • The non-negotiable rules every treasurer should follow



Written by

Patrick Verspecht

Trainer

Risk Management Series (30 articles)

£55

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Every case study in this series is also included in our Unlimited Case Studies collection. Get the full story with access to all case studies on TMI Academy for just

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