When an enterprise applies for a credit line of business, under what circumstances should it choose a guarantee discount, and under what circumstances should it choose a discount? When choosing a guarantee discount, the billing enterprise also needs to have a credit line in the bank?
If it is a bank draft, then because the bank draft is a bank credit, generally no guarantee is required. Only in order to facilitate the circulation of the commercial draft, or to ensure that the commercial draft can be discounted or the price can be paid at maturity, a third-party bank or a sms marketing service reputable institution other than the drawer (enterprise) is required to confirm the commercial draft, that is, Guarantee that the commercial bill can be redeemed when due.
If the payer of the commercial draft fails to honor the draft, the confirmer (bank or institution) will be responsible for the payment of the draft. When an enterprise applies for a credit business type at the bank, as mentioned above, the bank draft generally does not need to be guaranteed. Whether or not to discount is the payee's own business, and there is no need for the