We, the Performance Bond Providers in Dubai can support your exports or projects by providing a Performance bond on behalf of the seller / Contractor.
To apply for MT760 from rated banks, please follow the simple process given below:
Performance Bond or Performance Guarantee or Surety Bond is a financial tool issued by a bank on its clients’ behalf to assure their performance. Further, this acts as a guarantee; to secure any claim by the buyer to the seller; in case of any default in the supply of goods; as agreed in the contract.
This type of Bank Guarantees also often used in construction projects. Here, the contractor provides this bond in favor of the project owner to assure their work on the project. Also, this protects the project owner against any claim; in case of non performance by the contractor; as per their agreed terms. Also, this bond assures that even in case of any default; – such as bankruptcy or any events, the work will not be stopped or affected.
At the same time, this is also issued by the seller; in favor of a buyer while concluding large contracts of goods supply. Also, this issued MT760 will act as a guarantee to obtain the Letter of Credit – DLC MT700 from the buyer to conclude the deal.
Getting such bonds from banks can be tough. As the process is slow and also requires the tie-up of working capital. We are aware of these problems; and so, we’re ready to provide you the right solution.
Further, being performance bond providers, we provide these bonds from our rated bank accounts. So, there is no need to tie up your cash funds; also, no need for blocking your capital or funds to avail MT760.
There 3 parties involved with MT760 and they are:-
Principal – Also called as Contractor or Seller; they are the ones who request the bank to issue the Bond which assures their commitment; to complete the project or a supply of goods on time.
Obligee – The project owner or buyer who receives the bond in their favor from the contractor or the seller.
Bank– Who issues the guarantee; and assures that the contractor or seller will perform as per the contract terms.
When entering into a contract or trade deal, the contractors or the sellers are required to provide a guarantee. And this assures their commitment to complete the task on time. Further, this bond gives assurance to the project owners; that in case of any default against the contractor or seller in terms; then the counter party can claim the bond.
Further, this bond also works in such a way to give complete protection to the project owner or buyer by stating that the performance will not affect; even if the contractor or the seller declares bankruptcy or faces other fiscal issues that would preclude them from completing the work.
Since this bond gives utmost protection against contractor’s or seller’s default; having a Performance Guarantee is one of the most required documents to sign worthy contracts and trade deals.
Mostly, Performance Bonds are used by contractors in a construction contract. If you won the bidding process; the project owner may demand you to provide a bank guarantee; before you start working on the project. Further, this assures your performance; also, will give protection to project owners against any default.
Usually, when it comes to availing MT760, contractors contact their bank with their BG request. The bank will consider their request and issue the BG; only if they have the Bank Facilities available; or have enough cash funds to block as collateral in their account.
In case, if you face a lack of bank facilities or a lack of cash margin to get Performance Bond from your bank; then you can contact us with your request.
To apply for a Performance Bond, you can submit your requirements herehere. Applying for a performance bond with us is pretty simple. If you have all the paperwork done and paid the charges on time; then we can complete the issuance process in 2 working days.
The cost varies based on the tenure of the required bond. Usually, it includes bank commission, processing fee, and other handling charges. Further, these charges should be borne by the applicant; also, before issuance, the bank will debit these charges from the applicant’s account.
Bronze Wing Trading L.L.C., the Performance Bond providers are here to assist you to avail the required bond from rated banks without cash margin. For the past 30 years, we have helped more than 25,000 traders and contractors to support their contracts.
Do you require Performance Bonds to assure your performance to your buyer / project owner?
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