Bid bond

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Revision as of 09:33, 4 April 2021 by imported>Doug Williamson (Add Tender guarantee. Source: BBA webpage https://www.bba.org.uk/customers/business-banking/financial-support/bonds-guarantees/)
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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