Bronze Wing Trading L.L.C. provides Advance Payment Guarantee on behalf of Contractor / Seller which enables them to acquire the down payment as per their contract.
To get APG MT760, follow the process given below:
Advance Payment Guarantee acts as an assurance to secure the advance payment made by the developer or buyer to the contractor or seller. It is issued by a bank on behalf of their clients; and in favor of their counter parties. This bond is also called as Payment Bond.
Once issued, the value of this bond will reduce concurrently, as per the work done by the contractor. And also, it keeps on reducing, till the completion of the terms as per the agreed contract. In case, if the contractor fails to oblige the contract terms; then the project owner can call the bond to claim the payment made as advance.
Also, this APG MT760 is payable on first demand. i.e. if the developer calls the bond in written format; then the advance payment will be paid out in full without any preconditions having to be met.
Advance Payment Bond also being used in import and export trade deals. If the seller requires Advance Payments from the buyer before proceeding with the shipment. Then, they demand a bond to secure their risks against any default by the seller. MT760 not only allows the seller to receive down payment; but also, secures the buyer’s down payment on the contract price before the supply of the goods.
We understand the emerging need for these types of bonds in both the trading & construction industry. Usually, traders contact banks or other private sectors to avail such bonds on their behalf. But, the banks often demand: 100% cash margin or collateral to issue MT760 on their behalf.
But we at Bronze Wing Trading didn’t demand anything to issue MT760 on behalf of our clients. We provide MT760 from our rated bank account; and assist our clients to conclude their deals / projects as per the signed contract.
In defining the Down Payment Guarantee, it has been stated that steady cash flow is very important to a contractor to execute projects. Any delay in the payment will affect the work progress. Also, makes contractors end up with the inability to pay sub contractors, workers, and suppliers.
That’s why contractors often demand down payment from project owners before starting the work on a project. On the other hand, to secure such down payment made, the project owners demand a Down Payment Guarantee in return.
The MT760 ensures the project owners that contractors will fulfill the contract within a certain set time period. And in case, if they fail to do so; then the project owner can claim the bond against the default to get the refund of down payment.
The main purpose of this Bank Guarantee is: to increase cash flow for contractors to meet the startup costs of a project. And, to speed up the progress of work and to ensure the quality of work.
Overall, it’s cleared that this bond enables contractors to perform more effectively. And so, the non availability of this bond leads to delay in project execution and increases its material costs, labor costs, &, etc. This is the reason why almost all project owners demand such guarantees from contractors.
The parties involved in the issuance of APG MT760 includes:-
Applicant – The contractor or seller who requests the MT760 from the bank, in favor of the project owner or buyer.
Beneficiary – The developer or buyer who receives the MT760 in their favor.
Bank – The bank who assures the payment, in case, if the contractor or the seller defaults.
You can avail Bank Guarantee by contacting us! We provide Guarantees on behalf of contractors / sellers to secure advance payments from their project owners / buyers.
With a deal conclusion time of 48 working hrs, we assure you that you will receive the guarantee at the right time to conclude your trade deals / projects. Certainly, we do not require any cash margin from your end. We provide MT760 on your behalf from our rated bank account.
Want to secure advance payment from your buyer or project owner? Avail Advance Payment Guarantee from us! Apply now!