A guarantee of payment by a third party, often a bank, on a bill of exchange or promissory note, ensuring the instrument is honored.
A confirmed irrevocable letter of credit adds an additional layer of security for the beneficiary by employing a second bank's confirmation, ensuring payment even if the initial issuing bank fails.
Retainage refers to a portion of a contractor's payment that is withheld by the client until the project's completion or another specified date to ensure work quality and project satisfaction.
