Advance Payment Guarantee Process
To avail Advance Payment Guarantee from Bronze Wing Trading L.L.C., please follow the process given below:-
1. At first, the seller or contractor submits their deal in terms of SPA or a contract.
2. Secondly, we will review the contract between the developer and the contractor or between buyer and seller. And will inform them whether their request is approved or not.
3. Then, if approved, we will sign the service agreement with the seller / contractor. And also, we will inform them to pay the services charges to begin work on their deal.
4. Once they paid the service charges, we work with our bank to structure the Payment Bond as per the client’s requirement and sent the draft for their review. Also, we will inform them about the issuance fee and the documents required for issuing the APG MT760.
5. Once they approve the draft and pays the issuance fee; then, we will request our bank to proceed with the issuance of APG from our bank account.
6. Accordingly, our bank will issue the Payment Bond to the buyer’s/ developer’s bank via MT760 swift within 48 working hrs.
Apply For APG MT760
Down Payment Guarantee Video
Advance Bank Guarantee
This Advance Bank Guarantee is issued in favor of the buyer / developer. This is to say that this acts as a surety to secure the upfront payment made by the buyer / developer against default by the contractor / seller.
APG MT760 is mostly used on construction projects. Whereas contractors require upfront payment to mobilize the project; which includes – initial material cost, labor salaries, etc. If a client agrees to make an upfront, then the developer demands a bond from the contractor to secure their payment. For instance; if the contractor defaults or fails to complete the work, this bond will protect their client from fiscal risk.
Further, this Bond can also be used in import / export trade deals. Whereas, the seller requires some amount in advance from the buyer before they supply the goods. Further, in the case of non delivery of goods, the buyer can liquidate the seller’s bond to get their payment. Also, in such cases, the sales and purchase contract will consider as null & void.
In effect, the APG ensures the buyer and developer do not lose their payment paid to their counter parties. However, it does not cover any amount of profit that the buyer may expect from their deals with the parties.
This type of bond is issued by the contractor’s bank in favor of the developer to get the down payment. In general, a contractor needs a certain amount of funds in advance from the developer to mobilize their project work.
In that case, the developer releases the amount, after the contractor’s bank issues the bond in favor of them. Further, this ensures, if the contractor fails to perform as per the contract terms; then, the amount paid can be claimed. Also, this assures that the job will complete as per the agreed terms without any default.
Advance Bank Guarantee Benefits
Meanwhile, there are a lot of reasons to avail Advance Bank Guarantee from us. However, here we have listed the top benefits of availing APG from us.
- Expand your business as your cash is in your control.
- It helps contractors in securing worthy contracts.
- It allows the buyer to void the deal; in case, if the seller fails to perform. Also, it confirms the buyer’s right to claim the payment paid.
- Also, suitable for building projects, buying bulk goods, and large scale industrial plants.
Advance Payment Bond Cost
Advance Payment Bond cost includes processing fees, bank commission fees, transmission fees, and swift charges. Also, the fees may vary based on its tenure.
Moreover, the charges are paid on account of either by the developer or the contractor as per their agreed terms. Further, this has to be stated in the issued Bond.
Also, for more details on the fees & charges, contact us!
International Bank Guarantee Providers
Gone are the days when one financial tool would fit for all your trading needs. But now things are changed. Businesses may face losses from all angles – lack of goods, lack of cash flow, buyer or seller default, etc. So, it’s a must to protect your business from fiscal risk by using APG MT760 in your contract.
Would you like to avail Advance Payment Guarantee for your trade or project? Contact Bronze Wing Trading L.L.C. today.
We are the direct provider of APG MT760 from Top European Banks. Above all, we will issue this APG within 2 days; i.e. 48 working hours.
Submit your queries now and we will get back to you right away!