An advance or prepayment is often necessary to finance your commercial contract. The client understands that. To help your client feel secure, you can draw up an advance payment bond in return.
The buyer receives a guarantee that they will receive their advance payment back if the contract is not performed or not performed in full.
You receive additional cash to finance the works.
Good trading relationship
Being able to offer your trading partner a guarantee is a trump card in the negotiations.
Advance payment bond
An advance payment bond is a guarantee for the buyer/principal (beneficiary of the guarantee) that they will be able to claim back all or part of the advance they have paid you as the supplier/contractor (issuer of the guarantee) in accordance with the commercial contract, in the event of non-performance or incomplete performance of the contract.
- You receive additional cash to finance the works/assignments.
- The buyer is given a guarantee that they will receive their advance back in the event of non-performance of the contract.
- KBC offers a best in class service to its clients for this product.
If you’d like to know more about a guarantee which provides you with an advance and your client with certainty, don’t hesitate to contact your KBC relationship manager about the advance payment bond.