Advance Payment Guarantee Process

Do you need an Advance Payment Guarantee to secure upfront payments from your counterparties? Follow the steps below to apply for a Guarantee Letter from rated banks—without blocking your cash funds!

• The seller or contractor submits their deal details, such as a signed SPA or contract.
• Our team will review the contract and notify the client whether the request is approved.
• If approved, we’ll proceed with signing the service agreement and inform the client to pay the admin charges to initiate the process.
• Upon receiving the charges, we’ll coordinate with our bank to structure the MT760 by utilizing our bank’s credit line. We’ll also share the bond draft for client approval and communicate the issuance fee.
• Finally, we’ll instruct our bank to issue the Advance Payment Guarantee from our account. The APG will be delivered to the counterparty’s bank via SWIFT MT760 within 48 hours.

What is Advance Payment Guarantee

• Advance Payment Guarantees are formal commitments issued by banks on behalf of contractors or sellers, in favor of buyers or project owners. These guarantees serve as financial assurance to secure any upfront payments made by the buyer or owner, protecting them against defaults by the contractor or seller.
• APG MT760 is widely used in construction projects, where contractors often require initial funds to kick-start the work. If a project owner agrees to provide such advance payments, they typically request a payment guarantee from the contractor to safeguard their funds. In cases of default or incomplete work by the contractor, the bond ensures the client is financially protected.
• This type of guarantee is also applicable in import/export trade transactions. When a seller requests advance payment before shipping goods, the buyer may insist on a payment bond. This bond offers the buyer reassurance that, if the seller fails to deliver the goods, the buyer can recover the paid amount through a claim.
• Ultimately, Advance Payment Guarantees help secure the financial interests of buyers or project owners against any payment-related risks due to non-performance—though they do not cover expected profits or losses from incomplete tasks.

Advantages of Advance Bank Guarantee

There are several compelling reasons to obtain a Bank Guarantee through us. Below are the key benefits of securing an APG from our service:
1. Maintain control over your cash flow while growing your business.
2. Enables contractors to confidently enter into high-value contracts.
3. Protects the buyer by allowing deal cancellation if the seller fails to perform, along with the right to recover the advance payment.
4. Ideal for construction projects, bulk purchases, and large-scale plant acquisitions.

Apply for Advance Payment Guarantee