Introduction

Advanced payment guarantee is issued to guarantee the refund of Advance payment received by the Applicant under a contract due to the Applicant’s non-performance of contractual obligations.

Product Features

1. Mitigate the mutual distrust of parties involved in sale or project.

2. Guarantee proper and timely performance of the contract.

3. Reduce the need for litigation and arbitration cases arising due in order to recover advance payments made under a contract for non-performance of contractual obligations.

4. Ensure due compensation when contract breached.

5. Suitable for constructors who received advance payments for construction work which are to be carried out in due course.

Application requirements

1. Maintain current account with our bank.

2. Companies must possess the proficiency in performance under the contract.

3. A credit facility or at least 100% cash margin or deposits must be provided (must be pre-arranged with the bank).

4. The format of the guarantee that is to be issued must be acceptable to the bank.

Application Procedures

1. Applicant submits bank guarantee request together with the documents evidencing the need for the Advance payment guarantee. Eg the commercial contract.

2. Applicant remits the cash margin or deposits into the Bank and submits the required documents.

3. The bank evaluates customer and transaction information.

4. The bank reviews the bank guarantee request, the format of the guarantee and checks the security documentation.

5. The guarantee is issued.