A bank guarantee is a contractual agreement mitigating risk and reducing the loss if things do not go as planned, allowing you and your international trading partner do business more safely.
Working capital management
In many companies, too much capital is tied up in inventory or invoices that customers do not pay until several months later. These issues lead to pressure on liquidity and may even necessitate credits from banks.
Reverse factoring – improved balance sheets for suppliers and buyers
For any supplier, poor cash flows as a result of long payment terms puts financial limitations to their business and potentially impedes growth. They might prefer receiving early payment, whereas the buyer will be adversely affected if letting go of the money earlier.