Advance Payment Guarantee.

The Advance Payment Guarantee is used when a developer makes an advance payment to a contractor and obtains a bank guarantee as security against that payment. The guarantee is payable on demand and contains optional wording for the value of the guarantee to reduce as interim payments are made under the contract.

In trading markets, to secure any claims by the buyer on the seller for reimbursement of the buyer’s advance payment on the contract price before delivery of the goods (or advance payment of the full contract price) in the event that the seller has failed to meet their contractual delivery obligations in full.

This Advance Payment Guarantee not only enables the exporter to receive advance payment of the last term of the contract but the importer to be covered in the event of a problem during that period.

BanCredit provides Advance Payment Guarantee on behalf of the supplier/contractor which enables them to acquire the advance payment as per their contracts.