Advance payment is a common feature of contracts in a range of industries, especially the construction industry. When this happens, the contract owner would require security that the sum settled in advance will be refunded if the contract or agreement in terms of which the payment was made, cannot be fulfilled. Nordic Guarantee’s Advance Payment Guarantee issued in favour of the contract owner is a popular way of providing this security.
The specific Advance Payment Bond you may require will depend on the industry you are, as well as the nature of the agreement you wish to secure. Unlike usual insurance policies, Advance Payment Bonds are not subject to payment of a First Loss, Excess payment or a Deductible. Advance Payment Bonds relate to specific agreements/ contracts and are invariably only valid for limited periods. Although an Advance Payment Bond is an irrevocable document, there is no requirement to return the original document after the Advance Payment Bond lapses. This is one example how we strive to make your live a little bit easier.
Nordic Guarantee is the obvious choice when you need an Advance Payment Bond
We specialize in providing Bonds- full stop! As a result, we possess the skill-set and specialist expertise to deal with anything relating to Bonds. Our Bond-products are designed to meet the industry standards. However, should you have a unique requirement, we are willing and able to propose a customized solution to suit your business. Overall, our Bonds serves to improve your liquidity without compromising its existing bank credit facilities. Most importantly, we pride ourselves on a straightforward, fast and convenient application process.