Advance Payment Guarantees

Protects a client who pays a contractor upfront — the bank refunds the advance if the contractor fails to deliver, and the guarantee amount reduces automatically as work is completed.

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WHO IT'S FOR

Built for secured mobilisation.

Contractors receiving mobilisation paymentsMeeting a client's requirement to secure an advance before work begins.

Developers extending advance fundingSecuring an upfront payment made to a contractor or supplier before delivery.

Suppliers on progress-paid contractsBacking an advance received against a larger supply order.

EPC contractors on staged projectsSecuring mobilisation funds released ahead of on-site work.

STRUCTURE & THE NUMBERS

Where this typically lands.

Indicative figures: every case is confirmed against the specific bank, transaction and applicant profile.

10–20%Of contract value, typical advance covered

ReducingGuarantee amount amortised against certified progress

To completionValidity matched to delivery milestones

5–7 daysTypical issuance once advance terms are agreed

HOW IT WORKS

From advance to completion.

Advance payment term agreedThe contract specifies the advance amount and the guarantee required to release it.

Guarantee requestedWe prepare the application against the advance amount and your available cover.

Issued for the full advanceThe bank issues the guarantee to the client before the advance is paid out.

Reduces as work is certifiedThe guaranteed amount steps down as progress payments are certified against the advance.

Expires at the final milestoneThe guarantee falls away once the advance is fully offset against completed work.

A NOTE FROM THE DESK

“The reducing structure is the part clients check most closely. We agree the step-down schedule with the bank before the guarantee is issued, not after.”

FREQUENTLY ASKED

Common questions.

Does the guarantee amount stay fixed?

No — it's designed to reduce (amortise) in line with certified progress, so you're not paying for cover on an advance that's already been worked off.

Who typically requires this guarantee?

The paying party — usually a developer or main contractor — as a condition of releasing mobilisation funds before work starts on site.

What happens if the contractor doesn't deliver?

The client calls on the guarantee and the bank refunds the outstanding, un-amortised portion of the advance directly.

Ready to secure an advance payment?

Share the payment terms in your contract and we'll confirm the guarantee structure your bank will accept.