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