Everyone Finance

Just a request for your info/experience with the situation below

So I'm interning at an organization is entirely donor-funded and one of the major donors has required us to bank with a financial institution that could provide us a financial/bank guarantee equating to around 60% of the grant. how do bank guarantees work?
what are the leading banks out there that offer this service? how does the guarantor benefit from providing the guarantee?

I'm a newbie to Finance.Any info appreciated.Thanks

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questionWeaver

They are very different ... from bank to bank

The bank gets a fee for this

They essentially lend money for a portion of the grant.

To provide more guidance reguires more details ... but the banks will tell you all this.

Most large banks have a division that handles this.