As an exporter, you can come across various situations when negotiating with your customers , which will put you in one of the following positions:
You decide to ask your customers to guarantee payment by means of a Payment Guarantee. This way, on the agreed due date for payment, if your customer fails to honour the payment, you could execute the guarantee, complying with all the requirements established therein, thus guaranteeing collection of payment by the bank that issued the guarantee.
You ask your customer for advance payment of a percentage of the invoice amount before you begin manufacturing the product or buying from a third party. In this case, your customer might ask you in exchange to issue a guarantee so that, should you fail to meet certain conditions in terms of the goods supplied, they can recover the amount paid in advance. You will have to issue an Advance Payment Guarantee in their favour. To emitir una Garantía you must have a Línea de Comercio Exterior.