Performance Guarantee/ Bond or Surety Bond is a financial tool that act as guarantee to secure any claim by the buyer to the seller in case of default in delivery or performance for supplying huge commodities as per the contract terms .
Performance Bond are commonly used in the construction and development of properties, where an owner or investor may require the developer to assure that contractors procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as insolvency of the contractor, etc.). In other cases a performance bond may be requested to be issued in other large contracts besides civil construction projects.
Obtaining Performance Bond and Guarantees from traditional sources is sometimes difficult, time-consuming and ties up working capital. Bronze Wing Trading L.L.C understands these problems and provides performance bond and guarantees as simple as possible, often without the need to tie up valuable cash resources and always as fast and as efficiently as possible.
Types of Bank Guarantee:
Below are the step by step procedures to obtain Performance Bond and Guarantees 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 PG / PB application.
3. Once the PG / PB application is approved then the Supplier / Contractor will provide certain documents and pay the PG / PB issuance fee charges.
4. BWT will immediately act and will provide from their bank account with European Bank the required PG / PB on behalf of Supplier / Contractor & in favor of buyer / developer to conclude their transaction.