An Advance Payment Guarantee protects buyers by ensuring refund of advance payments if contractual obligations are not fulfilled.
An Advance Payment Guarantee (APG) is a financial instrument issued by a bank or financial institution to secure advance payments made by a buyer to a seller. It assures the buyer that the advance amount will be refunded if the seller fails to perform contractual obligations.
Advance Payment Guarantees are widely used in trade contracts, supply agreements, and project-based transactions where advance payments are required before delivery or execution.
Import and export trade contracts
Infrastructure and construction projects
Manufacturing and supply agreements
Project-based commercial contracts
