Bank guarantee and draft are both credit businesses, and banks bear risks and involve three parties.

Difference:

1, different requirements:

A guarantee is a guarantee. For convenience, most companies and banks are printed with a certain format of letter of guarantee, whose functions include delivering goods by letter of guarantee, issuing clean bills of lading by letter of guarantee, and countersigning prepayment bills of lading by letter of guarantee.

Various acts in the use of bills of exchange are regulated by the Bill Law. There are mainly ticketing, presentation, acceptance and payment. If it is necessary to transfer, it should usually be endorsed. If the bill is refused, it is necessary to make a refusal certificate and exercise the right of recourse.

2. Different functions:

Bill of exchange is the most widely used credit tool in international settlement, and it is a kind of abandoned securities.

A letter of guarantee is a guarantee that the guarantor will perform a certain payment responsibility or economic compensation responsibility within a certain amount and time limit when the applicant fails to perform his responsibilities or obligations as agreed by both parties.

Extended data:

Features of the draft:

1. From the perspective of the parties, when a bill is issued, there are three basic parties: the drawer, the payer and the payee. The drawer is the person who issues the bill, the payer is the person entrusted by the drawer to pay the bill amount, and the payee is the person who requests the payer to pay the bill amount with the bill.

Two, the bill of exchange is a kind of power of attorney, so the drawer and the drawee of the bill must have a real entrusted payment relationship and a reliable source of funds to pay the amount of the bill.

Three, the time draft must be accepted. Acceptance is a unique legal act of bill of exchange. It refers to a bill behavior in which the payer promises to pay the bill amount on the bill maturity date. Once the bill is accepted, the payer will replace the drawer and become the principal debtor of the bill.

Fourth, the payment date is diversified. In addition to immediate payment, bills of exchange also include regular payment, regular payment after issue and regular payment after sight.

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