The leading construction company in UAE required Payment Guarantee in Construction to get the advance payment from their project owner. Bronze Wing Trading, the trade finance providers in Dubai helped the contractor by providing the required bond without blocking their cash funds.
The Contractor received a million worth of building project from the leading project owner in Dubai. Further, to execute the work on the site; the client required advance payments from the project owner. But, to secure the advance payments, the project owner asked for an advance payment bond from their client. So, they started searching for ways to avail the bond on their behalf.
As a first attempt, the contractor asked their bank to issue the required MT760 on their behalf. But the bank asked 100 percent of the bond value as cash margin; to proceed with their request. Due to COVID-19, the client was unable to liquidate the cash funds at that time. So, they decided to get the MT760 Guarantee in other ways. At that time, they came across our Newsletter; which we have released in the mid of April 2020. Further, it states that “Despite Corona Outbreak, We Can Assist Traders / Contractors who are in Need of Trade Finance Services.”
After reading the newsletter, the client felt happy; and visited our website to know more about our services. And, they read our process to avail MT760. Further, they filled the Advance Payment Bond request form on our website.
Once we received the request from the client, our team studied their contract terms. Since they met all our terms, we conveyed our approval to them to issue the MT760. Then, we asked the client to sign the service agreement with us. Further, we asked them to pay the admin charges to start work on their deal. Due to curfews and lockdowns, the client was unable to visit our office directly. But, anyhow, we have managed to do all the things online; and the process went too smoothly without any glitches.
The Client signed the agreement and paid the admin charges to our bank account. After that, we blocked our bank limit and then, we structured the required bond, as per their contract. Further, we sent the draft of the required MT760 for their review. Then, the Client approved the draft and paid the issuance fee charges.
Once we received the fee, we instructed our bank to issue the advance payment bond to the developer’s bank. Further, this was issued via MT760 swift; that’s on behalf of the client and in favor of the project owner.
After receiving the MT760 in their favor, the project owner issued advance payments; to the client to mobilize the work on the site. Also, the Client felt happy for the timely service done by us; that helps them to avail advance payment from the project owner.
With heart filled thanks, the contractor said to us that: “In this Corona outbreak, we didn’t ever think that the transaction would be done in such a smooth way without any issues. Great thanks to BWT for their timely support in issuing the Payment Bond on behalf of us. Also, we are really thankful for the entire team. Further, we strongly recommend BWT to all those who are in need of MT760 guarantee for their building projects.”
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