ADVANCED PAYMENT BONDS
What is a Advanced Payment Bond?
An Advance Payment Bond is a guarantee, supplied by the party receiving an advance payment, to the party 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 Advance Payment Bonds?
As these bonds enable payment of cash to be made in advance of work being carried out they provide significant cash flow benefits to the contractor, giving them the opportunity to fabricate offsite if required and also providing a level of comfort for the beneficiary of the Bond.
What We Require From You
Provide us the details of the particular operation which is the subject of the bond requirement, including bond amount and period for which it will be required, together with a completed application form plus:
A copy of the bond wording required by relevant body
A copy of your last published audited accounts (if you are part of group, group accounts, too)
A copy of your latest management accounts
On receipt of this information, the application will be submitted to our panel of underwriters for their consideration. On the successful underwriting, we should be in a position to offer competitive non-binding indications of terms, as quickly as possible.
Once you have accepted our terms and provided any additional information requested, we will send you any legal documents that need to be executed (such as counter-indemnities) and an invoice for the premium.
Following receipt of the legal paperwork and premium, we will issue the bond.