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Payment guarantees are financial commitments that require the debtor to make a repayment based on the terms outlined in the original debt agreement. Sometimes the payment guarantee is backed with some kind of collateral, i.e. property or another type of asset that is accepted by the lender.
A performance guarantee provides an assurance of compensation in the event of inadequate or delayed performance on a contract. A deferred payment guarantee promises payment of installments due to a supplier of machinery or equipment
Payment Guarantee is surety for what we have paid and Performance guarantee is surety for either middle level or lower level individuals work performance according to the planning by the organization to the attainment of common goals.
Payment guarantee ensures the payment to the first party for the failure from second party. This guarantee is ensured by bank or personally pledged assets. Performance guarantee is basically a compensation to be given to the first party in case of any delay or non fulfillment of any condition by second party.
Payment guarantee is the payment which is to be made in case of failure according to the contract or agreement. Performance guarantee is the repayment in case of obligation of contract.
Payment Guarantee stands for Payment to be made incase of failure to fulfill the commitment or agreement.It is given by Bank or personal guarantee like Properties as colleteral can be given.Performance Guarantee is again Payment when an obligation of a contract for performing certain act has not been fullfilles.Mostly Bank Stands for the guarantee as it has international validity.
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