Advance Payment Guarantee Financing for Contractors and Developers
Employer wants an advance payment guarantee before releasing funds. Your bank wants a full cash block. That stalls site mobilisation and strains vendors. We structure APG financing that satisfies the employer and keeps your cash cycle alive.
Outcome:
an issued APG or SBLC APG with sensible collateral, a clear fee band, and a timeline aligned to your mobilisation date.
When This Is The Right Move
Your bank demands full cash collateral
You need a workaround that still passes employer review.
Employer mandates APG before mobilisation
You must evidence security to release the advance and start works.
Multiple projects compete for cash
You cannot freeze liquidity across EPC lots or phases.
Risk team needs tight covenants
You want covenants that are practical for site conditions and timing.
What We Arrange
APG issuance or SBLC APG
Bank guarantee under URDG 758 or standby under ISP98 that satisfies the contract wording.
Collateral solutions
Partial cash, receivables pledge, PPA or offtake pledge, or counter guarantee from a partner bank.
Surety and insurance routes
When bank limits are tight, we explore rated surety or reinsured standby options.
Employer approvals
We coordinate form, issuer acceptability, and claim mechanics to secure sign-off.
Indicative Terms
| Item |
Guideline |
| Instrument type |
Bank guarantee APG under URDG 758 or SBLC under ISP98 |
| Guarantee amount |
Typically 10 to 30 percent of contract value based on contract terms |
| Expiry and reduction |
Expires at defined milestones, optional reduction after commissioning or handover |
| Collateral |
Partial cash, receivables pledge, revenue pledge, or counter guarantee |
| Fees |
Per quarter commission on outstanding amount plus one-time setup and document charges |
What Drives Pricing
| Factor |
Impact |
| Issuer rating and corridor |
Higher rated issuers and friendly jurisdictions price better |
| Collateral quality |
Partial cash and strong pledges reduce commission bands |
| Contract risk |
LDs, cure rights, and performance history shape appetite |
| Tenor and reductions |
Shorter tenor and milestone reductions lower total cost |
Where This Solves Real Problems
Civil and EPC contracts
APG issued fast so plant hire and mobilisation do not sit idle.
Renewable developers
SBLC APG with revenue pledge to avoid full cash blocks before NTP.
Equipment suppliers
Bankable standby instead of big deposits so production can start.
Government and PPP
Form and issuer acceptable to procurement rules and audit trails.
How We Get You Approved
1) Diagnose
Review contract, APG form, milestones, LDs, and issuer acceptability.
2) Structure
Select APG or SBLC, define collateral mix, and set reduction schedule.
3) Paper
Redline wording, prepare pledges and counter guarantees, align employer sign-off.
4) Issue
Issuer releases the APG, employer confirms receipt, advance funds land.
What We Need To Start
- Executed contract or LOA with APG requirements and template
- Milestone schedule and advance amount requested
- Company KYC, project cash flow, and recent statements
- Collateral options, receivables list, or revenue pledge source
- Employer contact for issuer acceptability and form approval
Typical Timeline
| Stage |
What Happens |
Indicative Time |
| Intake |
Contract review, APG form check, issuer shortlist |
2 to 4 days |
| Structuring |
Collateral mix agreed, reduction plan, fee band |
3 to 7 days |
| Documentation |
Wording redline, pledges, employer sign-off |
5 to 10 days |
| Issuance |
APG issued and acknowledged, advance released |
Bank dependent |
Deliverables
- Named issuer route with acceptability by the employer
- APG or SBLC wording pack that passes compliance
- Collateral structure and fee band with reduction schedule
- Execution timeline matched to mobilisation and milestone dates
- Closing checklist and post-issuance reporting template
Client Reviews
★★★★★ "APG issued without freezing all our cash. Site moved on time and payroll never slipped."
– COO, Civil Contractor
★★★★★ "Their SBLC wording cleared legal in one pass and the employer accepted the issuer instantly."
– Project Director, Solar Developer
★★★★★ "We used a revenue pledge to cut the cash block. Commission came in lower than our bank quoted."
– CFO, EPC Firm
★★★★★ "Clean process, clear timelines, and a bank route that actually funded our start date."
– Head of Finance, Infrastructure Developer
Request Advance Payment Guarantee Financing
Upload your contract, APG form, milestone plan, and preferred issuers. We will respond with a collateral structure, fee band, and issuance timeline that fits your mobilisation.
Start the Process
Information is indicative. Any APG or SBLC is subject to issuer due diligence, independent credit approval, KYC and AML checks, and executed documentation. Terms vary by contract, issuer, collateral quality, and market conditions.