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Advance Payment Guarantee
2021-11-25
Definition of product
The written document which our bank issues to the owner or the buyer at the request of the project contractor or of the supplier of goods, so as to guarantee that the contractor or the supplier fulfills contractual obligations after the owner or the buyer pays advanced payment.
Scope of application
It is applicable to all items with a payment method of advance payment, and is commonly used in project contracting, material procurement and other projects.
Functional characteristics
1. In process of engineering contracting, material procurement and other projects, the Owner or the Buyer generally requires banks of the Contractor or the Supplier to guarantee their repayment of the advance payment to avoid the loss of advance payment due to failure of the Contractor or the Supplier to perform their obligations hereunder after receiving the advance payment.
2. It can guarantee the smooth recovery of the advance payment to the Owner or the Buyer, and further strengthen restriction on performance of the Contract by the Contractor or the Supplier.
3. It is convenient for the Contractor or the Supplier to make the advance payment in time, and is beneficial to accelerate the capital turnover of engineering construction or goods preparation.
(For more details, please contact nearby branch counters of Guangzhou Rural Commercial Bank or call customer service of our Bank at 961111)
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