Financial Guarantee Market by Product Type, Enterprise Size, and End User : Global Opportunity Analysis and Industry Forecast, 2021–2030

Financial Guarantee Market by Product Type (Bank Guarantees, Documentary Letter of Credit, Standby Letter of Credit (SBLC), Receivables Financing, and Others), Enterprise Size (Small Enterprises, Medium-sized Enterprises, and Large Enterprises), and End User (Exporters and Importers): Global Opportunity Analysis and Industry Forecast, 2021–2030

A financial guarantee is an agreement that guarantees a debt will be repaid to a lender by another party if the borrower defaults. Essentially, a third party acting as a guarantor promises to assume responsibility for a debt should the borrower be unable to keep up on its payments to the creditor. Financial guarantees can also come in the form of a security deposit or collateral. Financial guarantees act just like insurance and are very important in the financial industry. They allow certain financial transactions, especially those that wouldn’t normally take place, to go through, permitting, for instance, high-risk borrowers to take out loans and other forms of credit.
Financial guarantees act just like insurance and are very important in the financial industry. They allow certain financial transactions, especially those that wouldn’t normally take place, to go through, permitting, for instance, high-risk borrowers to take out loans and other forms of credit. In addition, financial guarantees assist SMEs in maintaining a positive credit score in order to get larger loans in the future. Hence, the adoption of financial guarantee provides several benefits to SMEs. Thus, the increasing adoption of financial guarantees by SMEs is fueling the growth the market. Moreover, the digitalization of the verification processes by the banks have made the documentation process much quicker and efficient. As a result, consumers can conveniently apply for loans and get quick approvals. Thus, the quick processing of documents by the banks is propelling the growth of the market. However, the bank needs a collateral in the form of the company’s moveable assets. Banks also want to be protected in case they have to pay the recipient. As a result, putting up collateral with a bank would weaken the company’s ability to fund its working capital in the future. In addition, collateral also increases the operational risks which directly affects the revenue of the company. Thus, the collateral demanded by the banks for financial guarantees is limiting the growth of the market. On the contrary, Consumer items, motor vehicles and components, electronic and electrical equipment, industrial machinery, industrial chemicals, and plastic and rubber products are all imported by many countries. Furthermore, numerous nations export crude oil, automobiles, and gold. These items are in high demand, and demand is expected to continue to rise in the future. Thus, rise import and export activities in developing countries is expected to open new avenues for the growth of the market.
The financial guarantee market is segmented on the basis of product type, enterprise size, and end user. By type, the market is segregated into bank guarantees, documentary letter of credit, standby letter of credit (SBLC), receivables financing, and others. Depending on enterprise size, it is fragmented into small enterprises, medium-sized enterprises, and large enterprises. On the basis of end user, it is bifurcated into exporters and importers. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the financial guarantee market such as Asian Development Bank, BNP Paribas, Barclays, Bank of Montreal, Citibank, HSBC, ICBC, National Bank of Canada, SINOSURE and Scotia Bank. These players have adopted various strategies to increase their market penetration and strengthen their position in the financial guarantee market.

Key benefits for stakeholders
• The study provides in-depth analysis of the global financial guarantee market along with the current & future trends to illustrate the imminent investment pockets.
• Information about key drivers, restrains, & opportunities and their impact analysis on the global financial guarantee market size are provided in the report.
• Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
• The quantitative analysis of the global financial guarantee market from 2021 to 2030 is provided to determine the market potential.

Key Market Segments

By Product Type
• Bank Guarantees
• Documentary Letter of Credit
• Standby Letter of Credit (SBLC)
• Receivables Financing
• Others

By Enterprise Size
• Small Enterprises
• Medium-sized Enterprises
• Large Enterprises

By End User
• Exporters
• Importers

By Region
• North America
o U.S.
o Canada
• Europe
o Germany
o France
o UK
o Italy
o Spain
o Russia
o Rest of Europe

• Asia-Pacific
o China
o Japan
o India
o Australia
o South Korea
o Rest of Asia-Pacific
• LAMEA
o Brazil
o Turkey
o Saudi Arabia
o South Africa
o Rest of LAMEA

Key market players
• Asian Development Bank
• BNP Paribas
• Barclays
• Bank of Montreal
• Citibank
• HSBC
• ICBC
• National Bank of Canada
• SINOSURE
• Scotia Bank