Performance bond

Trade finance.

A performance bond is an instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.

Also known as a performance guarantee.

See also

• Bond
• Call
• Guarantee
• Indemnity
• Nature performance bond
• Performance
• Performance guarantee
• Retention bond
• Trade finance