a bank guarantee, also known as a letter of guarantee, refers to a written credit guarantee certificate issued by a bank, an insurance company, a guarantee company or a guarantor to the beneficiary at the request of the applicant, which guarantees that the guarantor will perform a certain amount of payment or economic compensation responsibility within a certain time limit on behalf of the applicant when the applicant fails to perform its responsibilities or obligations according to the agreement between the two parties. At present, the most commonly used bank guarantees are: bid guarantee, performance guarantee, payment guarantee and advance payment guarantee. \xd\ A company letter of guarantee is a letter of guarantee issued by a company, which is guaranteed by the company's credit. There are two kinds of company guarantees: one is that the party, that is, the applicant, provides a letter of guarantee to the bank. Second, there is a special credit guarantee company as a third party to open a letter of guarantee for the client to the bank or beneficiary. \ xd \ xd \ The main differences are as follows: \xd\1. Bank guarantee is bank credit, while company guarantee is commercial credit. \xd\2. Bank guarantees are mostly used in international trade and international guarantee business. The company guarantee is mostly used to guarantee domestic companies to lend to banks. \xd\3. The company guarantee needs to be audited by the bank, and the bank guarantee is a bank's own behavior. \ xd \ xd \ When the beneficiary makes a reasonable claim under the letter of guarantee, the guarantee bank must bear the responsibility for payment, regardless of whether the client agrees to pay or not, and regardless of the actual facts of contract performance. That is, the letter of guarantee is an independent commitment and basically a documentary transaction business.