When the seller of machinery or other capital equipment is agreeable to extend long term credit to the buyer of the machinery, on the guarantee of a bank, such guarantee is called ______.

Deferred Payment Guarantee is a guarantee for a payment which has been deferred or postponed. The necessity to issue deferred payment guarantee arises in case of purchase of capital goods like machinery. Deferred Payment Guarantee is issued by the bank at request of customer when he purchases goods or machinery from a creditor on the terms of payment after a specified time in lump sum or in installments.