Bank Instruments · Trade Finance · Financely
Advance Payment Guarantee Arrangement
An advance payment guarantee protects a buyer who has paid a deposit or advance before goods are delivered or work begins. If the seller fails to perform, the guarantee allows the buyer to recover the advance from the issuing bank. Financely arranges these instruments through regulated banking counterparties, handling structuring, documentation, KYC coordination, and issuer placement on your behalf.
Arrangement Fee
$
6,500
Fixed fee. Excludes the guarantor's annual premium,
which you pay directly to the issuing bank.
Pay and Get Started
What the Arrangement Fee Covers
Structuring
We confirm the correct instrument type, rule set (URDG 758 or ISP98), and demand conditions based on your contract.
Documentation
We prepare issuer-ready draft wording aligned with the underlying contract, beneficiary requirements, and bank policy.
Issuer Placement
We place the mandate with a regulated banking counterparty and manage the process through to SWIFT issuance.
KYC Coordination
We compile and submit the compliance package, including corporate documents, beneficial ownership records, and counterparty KYC, to the issuing bank.
Execution Management
We track the mandate from submission through underwriting, draft approval, and final SWIFT transmission to the beneficiary's bank.
One Amendment Round
One round of wording amendments is included. Additional amendments outside the original scope are priced separately.
Who This Is For
Good Fit
- Sellers required to provide security against a buyer's advance payment
- EPC and construction contractors securing advance payment on project contracts
- Exporters whose buyers require a bank-backed guarantee before releasing funds
- Companies with an executed contract, clean KYC, and an identifiable issuing bank path
What We Need From You
- Executed underlying contract referencing the advance payment and guarantee requirement
- Corporate documents, ownership structure, and authorised signatory evidence
- Beneficiary name, bank details, and any specific wording requirements
- Audited financials or management accounts for the applicant
On the guarantor's premium:
the issuing bank charges an annual fee on the guarantee amount, typically priced as a percentage of face value based on applicant credit, jurisdiction, and tenor. This is agreed directly between you and the bank and is not included in Financely's arrangement fee.
Frequently Asked Questions
What does the $6,500 fee cover?
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The arrangement fee covers structuring, documentation, KYC coordination, issuer placement, and execution management from mandate to issuance. The guarantor's annual premium is separate and paid directly to the issuing bank, not to Financely.
What rule set governs an advance payment guarantee?
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Most advance payment guarantees are issued under URDG 758 or ISP98 depending on the beneficiary's requirements and the issuing bank's policy. We confirm the correct rule set at the structuring stage based on your contract and counterparty.
How long does issuance take?
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Most mandates with complete documentation move within two to four weeks. Timeline depends on KYC readiness, the issuing bank's cycle times, and draft quality. Incomplete files take longer. The fastest way to move is to submit a complete package at the outset.
Is confirmation available?
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Yes. Where the beneficiary's bank or jurisdiction requires confirmation by a second institution, we can coordinate this. Confirmation is priced separately by the confirming bank and is not included in the arrangement fee.
How to Get Started
Pay the arrangement fee via the link below. Once payment is confirmed, we send you a structured intake form and document checklist. We review your package, confirm eligibility and the issuer path, and begin the mandate process.
Pay the $6,500 arrangement fee to open your mandate. We will contact you within one business day with next steps and your document checklist.
Pay Arrangement Fee