EPC Payment Guarantees: Secure Mobilization Funds Without Delays
EPC Payment Guarantees: Protecting Cash Flow on Large-Scale Projects
You’ve won the contract. You’re ready to mobilize. But your client’s payment isn’t due until later—and your suppliers won’t wait. Financely structures EPC payment guarantees and advance payment bonds that protect your upfront exposure and unlock liquidity at the start of a project.
Why EPC Contractors Need Payment Guarantees
EPC contracts are complex, long-term, and often involve significant working capital before you ever issue your first invoice. Government-backed infrastructure programs, utility-scale energy projects, and PPP frameworks all come with milestone-based payments—and that creates a funding gap at the beginning. We provide advance payment guarantees for EPC contracts backed by our forward flow agreements with institutional lenders, so you can start work without tying up balance sheet cash.
What Is an EPC Payment Guarantee?
It’s a financial instrument—usually a standby letter of credit (SBLC) or bank guarantee under URDG 758 —that secures your client's advance payment to you, or vice versa. For the contractor, it acts as a credit enhancer. For the project owner, it provides recourse if milestones aren't met.
Common Instruments We Structure
- Advance Payment Guarantees (APGs): Issued by a bank to secure the return of an advance payment
- Performance Guarantees: Secures your delivery of contract scope and deadlines
- Mobilization Guarantees: Supports upfront costs like site prep, engineering, or procurement
- Back-to-Back SBLCs: Used when your supplier demands security based on your contract
Who This Is For
We support EPC contractors, subcontractors, and developers working across energy, transport, construction, water, and defense. Whether you're in early design, pre-financial close, or ready to break ground, we structure guarantees and facilities that keep you moving.
Our Role in the Process
Financely doesn’t just broker instruments—we underwrite, structure, and distribute. Backed by forward flow agreements with banks and private credit lenders, we create executable frameworks with defined draw triggers, expiry terms, and bankable language. Our facilities often blend:
- SBLC issuance or bank guarantee setup
- Collateralization strategy (cash, promissory note, receivables)
- Underwriting of the underlying EPC contract
- Distribution to our lending partners
Where Payment Guarantees Fit in the Capital Stack
These guarantees often sit alongside or ahead of senior debt and working capital lines. They're essential for releasing advance payments, triggering mobilization, and unlocking project cash flow. A well-structured APG can replace the need for cash collateral or reduce the size of an upfront equity injection.
What Makes an EPC Guarantee Bankable
- Signed EPC or FIDIC contract with defined milestones
- Clear advance payment terms and draw conditions
- Credible counterparty (project owner or government agency)
- Documented history of execution or subcontractor support
Need to unlock cash flow before your project even starts? Let Financely structure an EPC payment guarantee or mobilization facility that gives you real leverage—without burning working capital.
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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.
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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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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.
