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Advance Payment Guarantee | On-Demand Bank Guarantees

Advance Payment Guarantee (APG)

Your buyer will not release the advance without a clean, on-demand guarantee. We arrange APGs with exact wording, correct beneficiary details, and expiry tied to milestones or delivery. Draft today. Issue once counter indemnity and margin are in place.
Who we serve
  • * EPC and construction contractors
  • * Equipment and machinery suppliers
  • * Framework and call off suppliers
  • * SMEs that need repeat bonding capacity
When it fits
  • * Contract grants 10 to 30 percent advance
  • * Buyer demands on-demand wording and bank issue
  • * Expiry linked to shipment, commissioning, or first article
  • * Reductions against milestones or invoices
What we arrange
  • * On-demand bank guarantees under URDG 758
  • * Standby LCs under ISP98 where allowed
  • * Local issuance or A rated confirming bank
  • * Fast amendments, extensions, and cancellations

APG structure at a glance

Item Market practice What we control
Amount Equal to the advance, often 10 to 30 percent of contract sum Figures and words match, currency stated
Expiry Until delivery, commissioning, or as per milestone plan Dates mirror contract and claim window
Reduction Step down as invoices are certified or goods delivered Amendments issued on evidence agreed upfront
Rules URDG 758 for guarantees or ISP98 for standby LCs Wording mirrors annex, clean on-demand trigger
Delivery Original paper or MT760 for SBLC Courier, portal upload, or Swift as required

What clears credit

Counter indemnity
  • * Corporate counter indemnity signed by the applicant
  • * Board resolution and specimen signatures
  • * Parent support where balance sheet is thin
Collateral
  • * Cash margin or back to back SBLC
  • * Charge over deposits or escrow control
  • * Link to performance bond and contract proceeds
Wording control
  • * Beneficiary data exactly as in the contract
  • * No performance conditions in an APG text
  • * Claim address and documents kept simple

What we need to issue

Contract data
  • * Contract pages with advance clause and annex wording
  • * Beneficiary name, address, reference, and delivery mode
  • * Amount, currency, expiry, and reduction plan
Applicant file
  • * KYC pack, incorporation, tax, and licenses
  • * Last 12 months bank statements or auditeds
  • * Track record and live pipeline summary
Security and fees
  • * Counter indemnity signed
  • * Margin or SBLC received and confirmed
  • * Fees settled before issuance

Typical terms

Amount and tenor

Up to the advance amount. Valid through delivery or defined milestones, with a claim period if required. Extensions available on request.

Fees

Issuance fee plus a time based guarantee commission. Amendment or extension fees apply. Courier or portal fees where originals or e bonds are needed.

Delivery

Original paper with wet signature and seal, or MT760 for standby LCs. e Guarantee where the portal accepts it.

Process to draft and issue

1
Wording and eligibility

We mirror the required annex text and validate beneficiary data. Quick pass or fix list.

2
Credit and security

KYC, counter indemnity, margin or back to back SBLC, fees, and delivery mode agreed.

3
Draft and approval

Issuer releases draft for your check. We match every line to the contract. Written sign off required.

4
Issue and deliver

Original issued and couriered, portal upload completed, or MT760 sent. Amendments handled on request.

5
Reductions and release

We manage step downs against certified invoices or delivery proofs, then cancel on completion.

Advance Payment Guarantee FAQ

What is an APG

A bank undertaking to refund the buyer’s advance on first demand if the supplier fails to perform as per contract.

Is a standby LC acceptable

Yes where the contract allows a bank guarantee or a standby LC. We issue under ISP98 for clean drawing.

How fast can you issue

Draft same day after KYC. Issue once counter indemnity, collateral, and fees are in place.

Do you issue without collateral

No. There is always margin, a back to back SBLC, or equivalent security. If someone says otherwise, they will not deliver.

Can the APG be reduced over time

Yes where the contract permits step downs. We amend on evidence set in the contract or annex.

What happens on claim

Issuer pays if the claim meets the wording. Your counter indemnity is called and margin is applied. Avoid claims by matching milestones to reality.

Send the annex wording. Get an APG draft today.

Share the contract pages, beneficiary details, amount, expiry, and delivery mode. We will respond with terms, draft wording, and a clear checklist to issue on time.

Request Advance Payment Guarantee

We act as an arranger on a best efforts basis through regulated partners. Eligibility depends on KYC and AML, sanctions screening, legal review of wording, and approval by capital partners. Nothing here 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
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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.

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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.