The Advance Payment Guarantee is used when a developer makes an advance payment to a contractor and obtains a bank guarantee as security against that payment. The guarantee is payable on demand and contains optional wording for the value of the guarantee to reduce as interim payments are made under the contract.
In trading markets, to secure any claims by the buyer on the seller for reimbursement of the buyer’s advance payment on the contract price before delivery of the goods (or advance payment of the full contract price) in the event that the seller has failed to meet their contractual delivery obligations in full.
This Advance Payment Guarantee not only enables the exporter to receive advance payment of the last term of the contract but the importer to be covered in the event of a problem during that period.
Bronze Wing Trading L.L.C provides Advance Payment Guarantee on behalf of the supplier/contractor which enables them to acquire the advance payment as per their contracts.
Types of Bank Guarantee:
Below are the step by step procedures to obtain Advance Payment Guarantee from BWT :
1. Supplier / Contractor submits requirement in terms of pro-forma invoice or buy and sell agreement or contract of their deal to BWT.
2. BWT carries due diligence of their commercial transaction between the parties involved and will inform the concerned parties about the approval or rejection of their APG application.
3. Once the APG application is approved then the Supplier / Contractor will provide certain documents and pay the APG issuance fee charges.
4. BWT will immediately act and will provide from their bank account with European Bank the required APG on behalf of Supplier / Contractor & in favor of buyer / developer to conclude their transaction.