Advance Payment Guarantees
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Advance Payment Guarantees

An Advance Payment Guarantee binds the supplier to use the advance payment for the purpose stated in the contract between the buyer / employer and the supplier. An advance payment provides the supplier with funds to purchase equipment or components, and/or to make other preparations. In general, the advance payment guarantee should contain a reduction clause that automatically reduces the amount owing in proportion to the value of the (partial) delivery .It only becomes effective once the advance payment has been received and is only issued in connection with Performance Guarantees.

Requirements For Application

SME’s applying for a facility with PCBS needs to fulfil certain prescribed requirements by submitting the following documents:

  • Company profile (including an organogram and copies of the current and previous contracts)
  • Two years’ financial statements and three months’ bank statements
  • Letter of appointment
  • Contract information
  • Guarantee wording requirements
  • Company registration documentation
  • Copies of all members’ identity documents and income tax numbers
  • Copy of letterhead
  • Tax clearance certificates
  • CIDB certificate

All applications are subjected to a thorough analysis to establish the contractor’s risk profile. PCBS also determine contractors’ financial standing and their resource capabilities to fulfil the contract obligations. Furthermore, an owners’ character assessment is carried out.

 

Corporate Clients

  • Emphasis is placed on the financial standing of the contractor
  • Company structure and shareholding
  • Contract information
  • Guarantee wording requirements
  • Securities available

 

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Application Forms