Advance Payment Bond & Guarantee

What it covers

• Repayment of the advanced sum, or the unrecouped portion of it, where the instrument is validly called
• Typically issued for the advance amount and reduced as deliveries are made
• Structured as a bank guarantee or a surety bond depending on the provider and jurisdiction
• Wording aligned to the underlying supply or construction contract

Commonly excluded

• Disputes that fall outside the express wording of the bond or guarantee
• Claims made after the instrument's expiry or outside its notice requirements
• Losses beyond the stated bond amount
• Matters excluded by the surety, bank or applicable law

Eligibility

• A signed or advanced-stage contract specifying the advance payment
• Financial and credit review of the party procuring the instrument
• Acceptable jurisdiction and beneficiary arrangements

How a claim works

1. 01Notify us and the issuing provider as soon as an event may lead to a call
2. 02A call is made in the exact form required by the instrument, within its validity period
3. 03Supporting evidence of the contractual failure is normally required
4. 04We support the client through the documentation and correspondence