A written document issued by Banks at the request of a customer to the owner of a contracted construction or the buyer of a sales deal, guaranteeing the applicant will fulfill the contractual obligations after the owner or the buyer makes advance payment.
Facilitate timely receipt of advance payment, as well as speed up capital turnover during project construction and preparation-of-goods period.
1. Solve the problem of mutual mistrust between both parties of a transaction. With good reputation, Banks involves in the transaction and acts as a guarantor to promote smooth transaction by providing guarantee for the parties.
2. Guarantee fulfillment of contractual obligations.
3. Guarantee payment of contract price.
4. Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid and reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.
The advancement payment guarantee fees shall be charged based on the principles and rates determined in accordance with relevant rules of Banks
1. Contractors involved in constructed projects;
2. Suppliers involved in material procurement projects;
3. Sellers involved in shipbuilding contracts.