When a company receives a Demand Bank Guarantee on their account, as the Beneficiary of this instrument, they can approach their bankers, and utilising the Demand Bank Guarantee as security, request credit facilities such as a Bank Loan, a Capital Injection onto their balance sheet, or a line of credit for use as they and their bank see fit. As these facilities are granted against the security of a Demand Bank Guarantee, they are referred to as Credit Guarantee Facilities.
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