Advance payment guarantee: Difference between revisions
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''Trade finance - credit support.'' | |||
An advance payment guarantee is a guarantee supplied by a party receiving an advance payment, to the party making the advance payment. | |||
The advance payment guarantee is issued by a bank or insurance company in favour of the potential customer, to protect the customer against a contractor's failure to fulfil the contract satisfactorily. | |||
It guarantees that the advance payment will be returned if that happens. | |||
Also known as an ''advance payment bond''. | |||
== See also == | == See also == | ||
* [[Bid]] | |||
* [[Bid bond]] | |||
* [[Bond]] | |||
* [[Customs bond]] | |||
* [[Guarantee]] | |||
* [[Letter of credit]] | * [[Letter of credit]] | ||
* [[Performance bond]] | |||
* [[Performance guarantee]] | |||
* [[Retention bond]] | |||
* [[Standby letter of credit]] | * [[Standby letter of credit]] | ||
* [[Surety]] | |||
* [[Surety bond]] | |||
* [[Tender]] | |||
* [[Trade finance]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Trade_finance]] | |||
Latest revision as of 19:26, 4 March 2023
Trade finance - credit support.
An advance payment guarantee is a guarantee supplied by a party receiving an advance payment, to the party making the advance payment.
The advance payment guarantee is issued by a bank or insurance company in favour of the potential customer, to protect the customer against a contractor's failure to fulfil the contract satisfactorily.
It guarantees that the advance payment will be returned if that happens.
Also known as an advance payment bond.
