Advance Payment Guarantees (APG) & Completion Guarantees
Contract counterparties demand comfort before releasing advance funds or signing off on project milestones. We arrange Advance Payment Guarantees (APG)
to secure prepayments and Completion Guarantees
to reassure investors, lenders, and off-takers that obligations will be met. Both are subject to full underwriting and compliance checks.
Outcome:
Counterparty confidence that upfront funds or milestone payments are safe. Lenders and investors gain enforceable protection. Sponsors unlock working capital without losing credibility.
Who Uses APG & Completion Guarantees
EPC Contractors
Required to backstop advance payments and assure delivery under construction contracts.
Project Sponsors
Needing a completion guarantee to close financing or secure an off-take agreement.
Developers
Using guarantees to trigger milestone disbursements and reduce counterparty hesitation.
Investors & Lenders
Demanding enforceable guarantees before advancing capital to new or high-risk projects.
Pricing and Guarantee Terms
| Type |
Coverage |
Typical Fee |
| Advance Payment Guarantee |
Protects counterparty advance funds until performance milestones |
3%–7% upfront premium, 2%–3% annual |
| Completion Guarantee |
Covers project delivery risk for lenders or offtakers |
Negotiated based on project scope, tenor, and risk |
Underwriting Process
- Review of contract terms and obligations triggering the guarantee
- Financial and technical capacity assessment of the applicant
- Stress test of cash flow, repayment ability, and completion certainty
- Legal and compliance verification: KYC, UBOs, jurisdiction risks
- Negotiation of guarantee wording acceptable to both applicant and counterparty
How It Works
1) Submit Contract
Provide contract draft or signed agreement requiring guarantee.
2) Risk Review
Our team reviews commercial, technical, and legal obligations.
3) Terms
We propose premium, annual fee, and guarantee wording.
4) Issuance
Guarantee is issued and registered with the lender or counterparty.
When We Decline
- No defined repayment or completion plan
- Unclear project ownership or missing permits
- Counterparties unwilling to name banks or enforceable contract terms
- Companies without track record in the sector
Documents Required
| Document |
Purpose |
| Underlying contract or EPC agreement |
Defines obligations and triggers |
| Company KYC and ownership documents |
Clears compliance |
| Financial statements and forecast |
Shows repayment and completion capacity |
| Guarantee wording request |
Aligns expectations between parties |
Apply for an APG or Completion Guarantee
Share your contract details and funding ask. We will review eligibility and issue a tailored guarantee proposal.
Start the Process
Guarantees are subject to underwriting, compliance checks, and risk committee approval. We do not provide unconditional guarantees. All facilities require executed agreements, valid contracts, and enforceable terms. Fees are quoted on a case-by-case basis.