Advance Payment Bond

What is a Advanced Payment Bond?

An Advance Payment Bond is a guarantee, supplied by the Contractor or Sub-Contractor receiving an advance payment from the Employer advancing the payment. It provides that the advanced sum will be returned if the agreement under which the advance was made cannot be fulfilled. They can also be called Advance Payment Guarantees.

What are the benefits of an Advance Payment Bond?

This type of Bond enables payment of cash to be made in advance of work being carried out, usually for the purchase of materials, they provide significant cash flow benefits to the contractor, giving them the opportunity to fabricate offsite if required and providing a level of comfort for the beneficiary of the Bond.

What we require:

Provide us the details of the Contract which is the subject of the Advance Payment Bond requirement, including Bond amount and period for which it will be required, together with a completed application form plus:

  • A copy of the Advance Payment Bond wording (If non specified we may be able to suggest a wording)
  • A copy of your last published accounts (if you are part of group then consolidated group accounts as well)
  • A copy of your latest management accounts (up to the nearest quarter)

On receipt of this information, the Advance Payment Bond application will be submitted to our panel of underwriters for their consideration. Our underwriters will review the applicant’s financial strength, their historic trading performance comparative to the underlying obligations of the Bond. Upon successful underwriting, we should be able to offer competitive non-binding indications of terms, as quickly as possible.

Once the applicant has accepted our terms and provided any additional information requested, we will send out the security documents for execution (such as the deed of counter indemnity) and an invoice for the premium.

Following receipt of the completed paperwork and premium, we will issue the Advance Payment Bond

Contact us

Enter specific details regarding your interests and we will get back to you as soon as possible with a quote.

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    Founded

    Nationwide Sureties Ltd has been the #1 provider of Bonds & Guarantees for over 23 years

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    Client Satisfaction

    We provide fast & professional solutions for your Bond requirements

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    Underwriters

    Access to the whole surety market of highly qualified underwriters who can consider all of your Bonding

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    Value of Bonds

    We have arranged and issued over £500 million worth of bonds and guarantees, increasing daily.

    Example Bonds

    Advanced Payment Bonds

    An Advanced Payment Bond is a guarantee, supplied by the party receiving an advanced payment, to the party advancing the payment.

    Road & Sewer Bonds

    Road & Sewer Bonds are required by a Local Authority or Water Authority, they cover the Council or Water Authority if they need to construct/repair the Road or Sewer.

    Performance Bonds

    A Construction Performance Bond is a guarantee, typically with a value of 10% of the contract price and is designed to offer protection to the beneficiary.

    Retention Bonds

    A Retention Bond will provide the employer with the same level of comfort as the retention, but the contractor / has the benefit of retaining the cash.

    Nationwide Sureties are Performance Bonds, Construction Bonds and Advanced Payment Bonds specialists.

    Nationwide Sureties Ltd

    622 Regus Horton House
    L23 3PF
    0151 931 5599