Advance payment bond: Difference between revisions
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imported>Doug Williamson (Create page. Sources: BBA https://www.bba.org.uk/customers/business-banking/financial-support/bonds-guarantees/ and Nationwide Sureties https://www.nationwidesureties.co.uk/advance-payment-bonds#:~:text=An%20Advance%20Payment%20Bond%20is,was%20made%20cann) |
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Revision as of 09:40, 4 April 2021
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.
