Advance payment bond: Difference between revisions
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imported>Doug Williamson (Create page. Sources: BBA webpage 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%20mad) |
imported>Doug Williamson No edit summary |
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== See also == | == See also == | ||
* [[Bid]] | * [[Bid]] | ||
* [[Bid bond]] | |||
* [[Bond]] | * [[Bond]] | ||
* [[Customs bond]] | * [[Customs bond]] | ||
Revision as of 09:43, 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.
