Financial guarantee service is to guarantee the performance of financial contracts and the realization of creditor's rights, and guarantee the debtor's performance of debts with the credit of a third party or specific property. When a foreign investor invests in another country or runs a project with an enterprise in another country, he asks a financial institution acceptable to him in another country to provide a guarantee in order to safely recover the investment or avoid political risks. This is called financial guarantee. When financial institutions provide guarantees to foreign investors, bank credit replaces or supplements commercial credit, which relieves the worries of both partners, especially Miao merchants, and increases their trust, which not only protects the reasonable rights and interests of the other side, but also facilitates the financing of both parties and promotes the smooth transaction. The financial guarantee shall be in the form of a letter of guarantee issued by the guarantor.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.