Bid bond

Trade finance.

A trade finance bond issued as part of a contract tendering (bidding) process.

The bid bond is issued by a bank or insurance company to the potential customer, to protect the customer against a contractor's failure to sign a contract in accordance with the terms of the tender.

Also known as a tender guarantee.

See also

• Advance payment bond
• Bid
• Bond
• Customs bond
• Guarantee
• Performance bond
• Performance guarantee
• Retention bond
• Surety bond
• Tender
• Trade finance