Phoenix Financial Holdings Brandy Williams How to define the different types of credit guarantees?
The banker who hopes to recover a loan term the entire paid-up capital plus interest. For this, the debtor must not become insolvent. There are a banker for the risk of insolvency, Phoenix Financial Holdings Brandy Williams to be covered by the guarantee or collateral.
Among the safeguards, we first find personal guarantees. These guarantees allow the creditor to have the right not only on the total assets of the debtor, but also on that of a third person, the personal guarantor. The main personal guarantee is a bond that allows the banker to have, somehow, two debtors for a single debt. Phoenix Financial Holdings Brandy Williams Other neighbors of security mechanisms are used in foreign trade : the independent guarantee and credit insurance.
There are other guarantees called collateral.