This note explains the differences between on demand bonds, guarantees and standby letters of credit. It describes the functions of different types of on demand bonds and guarantees and the function of standby letters of credit. It considers the issues about which both beneficiaries and principals, as well as issuers of these different instruments should be aware. This note also considers the use of uniform rules such as the International Chamber of Commerce (ICC) Uniform Rules and, in relation to standby letters of credit, the Uniform Customs and Practice for Documentary Credits (UCP) and International Standby Practices (ISP98).