How to Get Performance Bond

 

To get Performance Bond from rated European Banks without blocking cash funds, please follow the steps given below:-

  1. The seller or the contractor submits their Performance Bond request in terms of a signed SPA or contract.
  2. Next, we will review their request and will inform our approval to them; if their request falls under our terms.
  3. After that, we will sign a service agreement with the client. Also, will inform them to pay the admin charges to proceed further. Once done, we will start processing their request by blocking our bank limit.
  4. After structuring their bond, we will send the MT760 (PB) draft to the client for their review. Also, we will request them to pay the BG issuance fee.
  5. Once we received the approved draft and issuance fee, we will open the Performance Guarantee from our bank account with the European Bank. Finally, this will be issued via SWIFT MT760 within 2 days on behalf of the client & in favor of their counterparty.

How to Get Performance Bond – Bank Guarantee Process

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    Performance Guarantee Video

     

    Latest Transaction

     

    Surety Bond Issued for a Spanish Contractor

    A Surety Bond worth of USD1.5 M was facilitated by BWT, the BG Providers in Dubai to assist the contractor in signing the new building construction project with the project owner. We issued the required MT760 through the help of our own Bank Account with an international repute bank in Europe.

    Amount: USD 1.5M
    Instrument: BG MT760
    Validity: 1 Year

     

    Get Performance Bonds in just 2 Days at ZERO Collateral

     
     

    What is a Performance Guarantee?

     

    A performance Guarantee is a Bank Instrument issued by a bank on behalf of its client. This is to assure the positive fulfillment of the project or trade deal towards counter parties. Since the bank is giving a written undertaking; MT760 acts as a surety bond for both parties involved in a trade deal or contract.

    When signing a new contract, project owners are skeptical about the performance of contractors. So, they usually demand a Bank Guarantee which assures the positive completion of the task towards the project owner.

    Further, this bond also assures that in case if the contractor fails to complete the project as per the agreed contract; or the seller defaults in the supply of goods; then the project owner or the buyer can claim the bond to get the compensation; i.e. for any monetary losses up to the amount of the bond.

    If you are looking to get BG MT760, then contact us today! We can provide a complete solution for availing surety bonds from good repute banks. With years of experience and expertise; we can make the PB MT760 Application process seamless and simple for you! Further, we have an outstanding relationship with International Standard Banks; also this helps us to give you options and choices to choose the issuers. Give us a call now to discuss your BG Requirement with us!

    Performance Bond

    How Does a Performance Bond Work?

    Usually, when it comes to construction contracts or trade deals, traders & project owners prefer to work with the one; who can provide a required assurance in terms of completion of a specific task or the supply of goods.

    Having a Performance Bond protects the buyer or the project owner against the risk of the contractor or seller. In case, if they fail to comply with the agreed terms. Also, it assures the positive completion of work within the stated deadline; also, within the allotted quote. Since contractors & sellers are giving these assurances towards their counter parties; it makes them more appealing in the bidding process. And, this, in turn, increases their chance of winning the bidding contest; also signing worthy contracts and trade deals.

    How to Qualify for a Performance Guarantee?

    Are you looking to get a PB MT760 to assure your performance towards your counter parties? There are 2 options available – Either you can get help from banks, or get help from private trade finance providers.

    If you contact banks to avail MT760, then they may demand you to block a certain percent of the bond value as cash margin in your account. But for contractors whose working capital is tied up with some other business, it’s difficult to meet the demands of the bank.

    That’s why, we, the International Bank Guarantee Providers in Dubai are here to help you. By blocking our own bank limit available with European Banks; we, not only provide – Performance Bond; but also provide – Advance Payment Bond, & Bid Bond without blocking your working capital.

    To check whether you’re qualified for availing BGs from us, submit your requirements to us now!

     

    Guarantee 100% Successful Project Completion with the Use of MT760

     
     

    Performance Guarantee in Construction Contracts

    Performance Bonds are mostly used in construction projects to assure commitment as per the agreed contract. Further, this bond assures the completion of the work; even in case of lack of cash flow or bankruptcy of the contractors.

    Usually, BGs are issued on first written demand. This means, if there is any default by the contractor, then the project owner can claim the bond to get the compensation required. Further, in order to claim the payment; the project owner may or may not be required to prove the default of the contractor.

    In case of contractor default, a new contractor will be hired by the bank with the consent of the project owner; to complete the pending work. In such a case, the contractor needs to bear the cost to complete the remaining work of the project. Also, this includes material costs and labor charges. Further, the bank will pay the new contractor the amount; they spent to complete the work.

    Performance Bond Value

    All contractors are likely required to provide a Bank Guarantee when they are signing a new project or contract. When you submit a bid for a new project; the project owners can’t able to figure out the exact cost required to complete the project. And so, it would be difficult to provide the cost that covers the bond value.

    As a rule of thumb, the bond value covers normally 10% of the contract value. Thereupon, it replaces the tender bid, once the contract is awarded and the Performance Bonds are issued. Moreover, this bond is always Irrevocable; that means it cannot be canceled or revoked. Also, it can terminate only; once the contractor has fulfilled all their terms towards the principal party.

    Parties Involved in Bank Guarantee

    • Seller or Contractor – The one who requests their bank for MT760; to prove the positive completion of the work or trade deal.
    • Buyer or Project Owner – The one who receives the MT760 in their favor.
    • Bank – The one who stands as a guarantor; by assuring that the contractor or the seller will fulfill the terms; as per the contract.

    Benefits of Bank Guarantee

    For Developers / Buyers:

    • Assures contractors / sellers will adhere to the terms as per the surety bond.
    • Serves as a warranty against low-grade work / supply.
    • Make contractors / sellers accept their fault; if it occurs while performing the job / supplying.
    • Also, it ensures that everyone involved in the project gets paid; even if there any defaults occur.

    For Contractors / Sellers:

    • Assures that the contract will be honored.
    • Assures the positive completion of the project; also the supply of goods.
    • Also, it serves as a surety for the project owner and buyer; in case of default.

    How Much Does a Performance Bond Cost?

    The cost of a Performance Bond usually includes bank commission, swift charges, and also other handling fees. For instance: it includes the charges for credit reports and so on. Further, if you have any queries in regard to the cost; you can send us your query and our team will assist you.

    Performance Bond Providers in Dubai

    For contractors & sellers, getting a payment bond from their banks seems to be a daunting task; as it blocks a huge cash flow of the company. We, the Performance Bond Providers in Dubai understand the problem faced by contractors & sellers. As a result, we provide MT760 from our own rated bank accounts by blocking our own bank limit. Therefore, there is no need to block any cash funds to get the bond issued.

    By choosing us, you’ll get:-

    • Fast and prompt service.
    • Deal close in 48 working hrs.
    • Partnered with rated banks.
    • Also, expert guidance throughout the process.

    Are you in the construction field? Gearing up for a new project? Certainly, the project owner will require an MT760 Guarantee to ensure that you can complete the job without any default; if assigned. So, get Bank Guarantees from us and get ready to sign worthy contracts!

    Submit your Performance Guarantee Performance Guarantee Request & Get MT760 issued within 48hrs!

     

    To Apply For Performance Guarantee

     
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