Bank Performance Guarantee Arranging for Contractors and Exporters
Contract award depends on a bank performance guarantee? We review the wording, prepare the credit file and approach issuers.
Start Client IntakeWho This Is For
Contractors, EPC companies, equipment suppliers and exporters who must post a bank performance guarantee to sign or keep a contract. It fits when the employer or buyer requires a demand guarantee from a bank rather than a surety bond, and your own bank cannot issue in the size, tenor or country required.
What We Do And What You Receive
We review the contract, the performance obligations and the guarantee text the beneficiary requires. We check whether the wording is on-demand or conditional, which rules apply, such as URDG 758, and how expiry, extension and reduction work. We then prepare a credit file and approach banks able to issue, with counter-guarantees through a local bank where the beneficiary's country requires it. You receive a wording review with suggested changes, a credit file for issuers, a comparison of terms offered and coordination through to issuance by SWIFT MT760.
Process And What To Send
Submit the transaction through client intake.
We assess the contract, the beneficiary and your company.
If it fits, we send a written proposal.
We coordinate issuers, wording and issuance.
Send the contract or tender documents, the required guarantee text, the guarantee amount and validity, the beneficiary's name and country, your last two years of financial statements and your company documents for KYC.
Why FG Capital Advisors
FG Capital Advisors is an independent structured trade and commodity finance advisor. We are not a bank and do not issue instruments in our own name. We prepare the file, coordinate banks and other counterparties, and work through regulated partners where required. Every request is assessed before we accept a mandate. Where it fits our scope, we issue a written proposal that sets out the scope of work, responsibilities and commercial terms. Final terms are always set by the banks after their own diligence and credit approval.
Related Services and Guides
Start Your Client Intake
Ready to move? Send the transaction through our client intake form, choose the Trade Finance & Working Capital route and include the details listed above. We review every submission and reply in writing with next steps.
Start Client IntakeFrequently Asked Questions
What is a bank performance guarantee?
It is an undertaking by a bank to pay the beneficiary, up to a set amount, if the contractor or supplier fails to perform under the contract. Most are issued as demand guarantees.
How is it different from a performance bond?
A performance bond is usually issued by a surety company and can involve proof of default. A bank performance guarantee is issued by a bank and is often payable on first demand. The contract decides which one is acceptable.
Can you help if the beneficiary is in another country?
Yes. Many beneficiaries require a guarantee from a local bank. In that case we coordinate a counter-guarantee from the issuing bank to the local bank.
