Business risk
First demand guarantee
Also: First demand bond
Guarantee that obliges the insurer to pay upon the simple request of the beneficiary, without discussing the underlying relationship.
In practice
It is the modality required by administrations and large contractors. For the company, it consumes risk line just like a bank guarantee, but it does not occupy credit with the bank, and that is its financial advantage.
Where it is addressed
This term is covered in the solution Crédito.
