Advance payment guarantee

This is used in the event that the exporter requires advance payment from the importer.

These guarantees have been created for circumstances in which the vendor asks the buyer for payment in advance. This way, the buyer is guaranteed to be reimbursed any amounts advanced in the event that the vendor breaches the contract.

They are issued before a payment on account is made and enter into effect the moment the vendor receives the funds in their account.

The amount of the guarantee matches the amount of the advance payment or payment on account.