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Advance Payment Guarantee
Trade Finance And Credit Support

Advance Payment Guarantee

If your buyer will not release the advance without security, the wording has to be clean, the beneficiary details have to match, and the delivery format has to fit the contract. We arrange Advance Payment Guarantees under URDG 758 or standby LCs under ISP98, subject to underwriting, KYC, collateral, and issuer approval.

Where It Fits

  • EPC and construction contracts with upfront mobilisation payments
  • Equipment, machinery, and industrial supply contracts
  • Procurement frameworks with beneficiary-drafted guarantee wording
  • Repeat applicants that need reliable bonding capacity

What We Arrange

  • On-demand bank guarantees under URDG 758
  • ISP98 standby LCs where the contract accepts that format
  • Draft review against contract annexes and beneficiary data
  • Amendments, extensions, reductions, and coordinated delivery

APG Structure At A Glance

Item Typical Position What Matters
Amount Usually equal to the advance, often 10% to 30% of contract value Amount, currency, and figures must match the contract exactly
Expiry Linked to delivery, commissioning, or agreed milestones Dates and claim window must mirror the underlying contract
Rules URDG 758 guarantee or ISP98 standby LC Clean on-demand wording with no stray performance tests
Delivery Paper original, portal upload, or Swift format where relevant The delivery mode has to match the beneficiary requirement
What Usually Clears Credit: signed counter indemnity, KYC file, financial profile, and acceptable security. In practice, that usually means cash margin, a back-to-back instrument, or equivalent collateral. No serious issuer will promise an APG with no security behind it.

What We Need To Review

Contract Pack

  • Relevant contract pages and guarantee annex wording
  • Beneficiary legal name, address, and reference details
  • Amount, currency, expiry, reduction mechanics, and delivery mode

Applicant File

  • KYC and corporate documents
  • Bank statements and financials
  • Security package and signed counter indemnity

Process

1. Draft Review

We check the wording, beneficiary details, rules, expiry, and delivery format against the contract.

2. Credit And Security

KYC, collateral, fees, and issuer conditions are confirmed before release.

3. Approval

A draft is reviewed and signed off before issuance.

4. Issue And Deliver

The instrument is issued in the required format, with amendments or reductions handled if needed.

Advance Payment Guarantee FAQ

What Is An APG?

An Advance Payment Guarantee is a bank undertaking that protects the buyer’s advance if the supplier fails to meet the agreed contract terms.

Can A Standby LC Work Instead?

Yes, if the contract allows it. In those cases, an ISP98 standby LC can be used instead of a traditional demand guarantee.

Can You Issue Without Collateral?

No. Real issuance depends on margin, a back-to-back instrument, or other acceptable security.

How Fast Can It Move?

Draft review can move quickly once the file is complete. Final issuance only happens after underwriting, security, and fees are in place.

Important: the biggest failure points are bad beneficiary details, messy annex wording, expiry dates that do not match the contract, and applicants expecting issuance with no collateral. That is where deals get stuck.

Send The Contract Wording And Beneficiary Details

We will review the requirement, revert with terms, and confirm what is needed to move toward issuance.

Request A Quote

Financely acts on a best-efforts basis through regulated or authorised counterparties where required. Any guarantee or standby LC remains subject to underwriting, KYC and AML checks, sanctions screening, legal review, collateral acceptance, final issuer approval, and delivery conditions. Nothing on this page is a commitment to issue.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.