Advance Payment Guarantee (APG)
The Advance Payment Guarantee (APG) process is designed to help clients acquire advance payments without blocking their own cash funds. To begin, the client submits a Pro forma Invoice or Sales Purchase Agreement (SPA) related to their trade deal along with the Bank Guarantee (BG) request. The request is then reviewed, and the client is informed whether it falls within the provider’s terms and can be approved. Once approved, the client signs a service agreement and pays the applicable charges, after which the process is initiated. The provider then structures the MT760 request with their bank by blocking the necessary limit and prepares a draft of the guarantee for the client’s approval. Following draft approval and payment of issuance fees, the official Advance Payment Guarantee is issued, assuring the buyer or supplier that the client has the financial backing to honor the advance payment arrangement.
The Advance Payment Guarantee (APG) allows clients to receive advance payments without using their own funds. The client submits a Pro forma Invoice or SPA with a BG request, which is reviewed and approved by the provider. After signing the agreement and paying charges, the provider issues the APG through its bank, assuring the buyer or supplier of the client’s ability to honor advance payment commitments.
Our APG Service
The Advance Payment Guarantee (APG) service provides financial assurance to buyers or suppliers that advance payments made under a contract will be protected. Through this service, clients can secure advance funds for trade deals or projects without tying up their own working capital. The guarantee is issued by the provider’s bank on behalf of the client, ensuring that the advance payment will either be used as agreed or refunded if the client fails to fulfill their obligations. This service helps businesses build trust with partners, improve cash flow, and confidently take on larger contracts or projects.
Service Challanges
The Advance Payment Guarantee (APG) service provides financial assurance to buyers or suppliers that advance payments made under a contract will be protected. Through this service, clients can secure advance funds for trade deals or projects without tying up their own working capital. The guarantee is issued by the provider’s bank on behalf of the client, ensuring that the advance payment will either be used as agreed or refunded if the client fails to fulfill their obligations. This service helps businesses build trust with partners, improve cash flow, and confidently take on larger contracts or projects.
