In Finland, a guarantee usually refers to an absolute guarantee under Finnish law. However, in foreign trade, "guarantee" usually refers to a guarantee that is not an accessory to a main contract but constitutes a separate and independent commitment. When a bank has issued a demand guarantee on behalf of its customer, the bank will be liable for payment immediately as the beneficiary presents a formally correct demand for payment.
Demand guarantees are used almost everywhere in the world, with the exception of the American continent, on which they are usually substituted with standby letters of credit.