Advance Payment Guarantee Issuance Advisory
We help you get an advance payment guarantee that the beneficiary accepts and a bank is willing to issue.
Start Client IntakeWho This Is For
EPC contractors, equipment suppliers, exporters and service providers who receive a down payment and must give the buyer an advance payment guarantee (APG) before the money is released. It also suits buyers and lenders who need to agree acceptable APG wording.
What FG Capital Advisors Does
- Review the contract clause, amount, reduction mechanism and expiry.
- Match the instrument to the requirement: a direct bank guarantee, a counter-guarantee through a local bank, a standby letter of credit or, where accepted, a surety bond.
- Draft or review wording under URDG 758 or ISP98.
- Prepare the bank-ready file and approach suitable issuing banks, guarantee providers and insurers.
- Coordinate collateral or margin options where your existing lines are full.
How The Process Works
You submit the requirement through our intake. We assess it, and where it fits our scope we issue a written proposal with scope, responsibilities and fees. Once engaged, we build the file, run the bank approach and coordinate wording, issuance and delivery to the beneficiary. Read our advance payment guarantees guide for how APGs work.
What To Send In The Intake
The contract or tender extract with the APG clause, the APG amount and currency, the beneficiary and its country, the required format or template, expected expiry and reduction schedule, your latest financial statements, existing bank lines and the collateral you can offer. For other instruments, see our SBLC, BG, DLC, UPAS and APG placement page or surety bond procurement support.
Related Services and Guides
Start Your Client Intake
Send the details through our client intake. We review every submission and reply in writing with next steps. LC, guarantee and facility approval, pricing and issuance remain subject to bank or lender review, KYC, AML, sanctions screening, credit approval and documentation. No outcome is guaranteed.
Start Client IntakeFrequently Asked Questions
What is an advance payment guarantee?
It is a bank undertaking to repay the buyer's down payment if the supplier or contractor fails to perform. Its value usually reduces as work is delivered.
Can a standby letter of credit replace an advance payment guarantee?
Often yes, if the beneficiary accepts it. Many contracts allow a standby under ISP98 or a demand guarantee under URDG 758, so the contract wording decides.
What if my bank lines are already full?
We look at alternatives such as a counter-guarantee structure, a surety bond where accepted, or additional collateral or margin. Each option depends on the issuer's credit review.
