Advance Payment Guarantee

An advance payment guarantee is a written agreement in which the guarantor takes responsibility for a contractual obligation if the first party defaults. Also termed as advance payment bonds, these are typically used to guarantee the performance of a commercial contract. Such a guarantee expires when the contract conditions are completed, and as such, should be drafted carefully to conditions suitable to both parties. With a team of experts having in-depth knowledge and experience in the process, we here at Credico Capital seek to equip our clients with an advance payment guarantee and help them through the process from start to finish.

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Advance Payment Guarantee

Understanding Advanced Payment Bonds

APG acts as collateral for the buyer, allowing them to recoup advance payment made to the seller if the goods or services supplied to them do not meet the contract specifications. For instance, a buyer may make advance payments to a seller to perform as per the contract criteria, and if the latter fails, the buyer can ensure that they do not lose the payment they've paid. However, it does cover any amount of profit that the buyer may expect from their deals with the parties.

APG for Trade Deals

Advance payment guarantees are widely used in import and export trade deals in which the seller requests advance payment before proceeding with the shipment. APG not only helps the seller to receive the required down payment, but it also protects the buyer in case the former fails to aid by the contractual obligations.

APG on Construction Contracts

Advance payment guarantees are widely used in import and export trade deals in which the seller requests advance payment before proceeding with the shipment. APG not only helps the seller to receive the required down payment, but it also protects the buyer in case the former fails to aid by the contractual obligations.

Who Can Benefit from Advance Payment Bonds?

Business owners and entrepreneurs based in a variety of industry sectors can benefit from APG for their business. Listed are some of the businesses and occupations where professionals can benefit the most by availing an advance payment bond:

  • Auto Dealerships
  • Construction Companies
  • Specialist Equipment Providers
  • Travel Agencies
  • Notaries

How We Help

As one of the most trusted trade finance agencies based in Dubai, we specialize in providing advance payment bonds against individual customer requirements. APG will help you to rest easy knowing that your money is safe, and your business is guaranteed to get the contracted work completed within the stipulated timeframe. For more details, reach out to us today, we’ll be more than happy to sit down and talk to you about how purchasing an advanced payment guarantee can help your business.

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