Advance payment bond: Difference between revisions
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* [[Guarantee]] | * [[Guarantee]] | ||
* [[Performance bond]] | * [[Performance bond]] | ||
* [[Performance guarantee]] | |||
* [[Retention bond]] | * [[Retention bond]] | ||
* [[Surety]] | * [[Surety]] | ||
Latest revision as of 19:28, 4 March 2023
Trade finance.
An advance payment bond is a guarantee supplied by a party receiving an advance payment, to the party making the advance payment.
The advance payment bond 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 guarantee.
