Manufacturer requires a payment guarantee - Are there different types?

I want to buy a wooden house. This is delivered as a kit and the manufacturer requires a payment guarantee. Does anyone have experience with this? At first glance, it seems to me that the manufacturer gets his money from the bank without any ifs or buts, no matter what he delivers. I find that quite drastic. Can someone share their experience with me? Are there different forms of the payment guarantee?

Yes, there is. Your local bank will also inform you about that.

The least problematic for you is a financing confirmation from the bank. Usually free of charge and you can show it. However, the builder has no option to spend the money elsewhere.

Whether he agrees to that, I don't know.