How to open a bank guarantee?

The steps to open a bank guarantee are as follows:

1. Submit application:

Individuals bring ID cards, recent financial statements of enterprises, contracts, approval documents of relevant departments and other materials to the bank outlets, indicating that a letter of guarantee is required, then fill out the application form and upload relevant application materials.

2. Bank audit:

The bank shall examine the application materials, forms and qualifications of the applicant and notify the applicant after passing the examination.

3. Implement the guarantee procedure:

Individuals can pay the deposit in the bank, handle pledge, third-party credit guarantee or property mortgage guarantee, etc.

4. Issue a bank guarantee:

After the individual completes the above procedures, the bank will issue a letter of guarantee in accordance with the regulations.

Legal basis: Article 388 of the Civil Code of People's Republic of China (PRC).

To establish a security interest, a security contract shall be concluded in accordance with the provisions of this Law and other laws. Guarantee contracts include mortgage contracts, pledge contracts and other contracts with guarantee functions. The guarantee contract is a subsidiary contract of the main creditor's rights and debts contract. If the principal creditor's rights and debts contract is invalid, the guarantee contract is invalid, unless otherwise stipulated by law.

If the debtor, guarantor and creditor are at fault after the guaranty contract is confirmed to be invalid, they shall bear corresponding civil liabilities according to their faults.