As a Performance Bond Provider in Dubai, we support your exports or projects by providing a Performance Bond on behalf of the seller or contractor.
To apply for MT760 from rated banks, simply follow the process below:
A Construction Firm in Dubai approached us for a Performance Guarantee on their building construction project. We blocked our bank limit through our European Bank, and on that basis, facilitated the required Guarantee in favor of their developer, assuring the contractor’s commitment to complete the project on time.
USD 717,408
MT760 Guarantee
A Performance Bond, also known as a Performance Guarantee, is a bank instrument issued on behalf of a client to secure their performance obligations under a contract or trade deal.
This type of bond is most commonly used in construction projects. Here, the contractor provides the bond in favor of the project owner, assuring the successful completion of the work. It also protects project owners against any claim in case the contractor fails to perform as agreed.
Ultimately, the bond’s purpose is to provide financial protection to the project owner if the contractor fails to perform as agreed, such as bankruptcy or other unforeseen circumstances.
Performance Bond also plays an important role in trade. It’s issued by the seller in favor of the buyer, before the DLC MT700 is opened on their end. In this way, the issued MT760 bond acts as a guarantee that the goods will be supplied once the seller receives the DLC MT700 at their bank counter.
Getting this kind of bond directly from a bank can be difficult, since banks typically require 100% of the cash funds to be blocked. As Performance Bond Provider in Dubai, we understand this challenge well, which is why we’re able to provide the required MT760, subject to a client undertaking and agreed terms.
Contractors most commonly use Performance Bonds in construction contracts. For instance, if you win a bidding process, the project owner may require you to provide a Bank Guarantee MT760 before work begins. This assures your performance and protects project owners against any potential default.
When it comes to availing a BG MT760, contractors typically approach their bank directly with their request. The bank will only issue the BG if the contractor has sufficient bank facilities in place, or enough cash funds available to block as collateral.
If you don’t have the cash funds available to block for a Bond through your bank, that’s where we come in, simply reach out to us with your request.
There are three parties involved with MT760:
Principal — Also known as the Contractor or Seller, this is the party that requests the bank to issue the Bond, assuring their commitment to complete the project or supply of goods on time.
Obligee — The project owner or buyer who receives the bond in their favor from the contractor or seller.
Bank — Issues the bond and assures the project owner or buyer that the contractor or seller will perform the agreed tasks as per the contract terms.
The cost of a Performance Bond varies depending on the tenure of the bond required. It usually includes bank commission, processing fees, and other handling charges, all of which are borne by the client. It’s also worth noting that the bank debits these charges from the applicant’s account before issuance.
Bronze Wing Trading L.L.C., the Performance Bond provider in Dubai, is here to assist clients globally in availing Performance Bonds without blocking their cash funds. Over the past 30 years, we’ve helped more than 25,000 traders and contractors support their trade deals and contracts.
Need a Performance Bond to assure your performance to your counterparty? Avail Performance Guarantee from us on your behalf.
A performance bond provides financial protection to the project owner if a contractor fails to perform according to the agreed contract terms.
The terms are often used interchangeably, though “performance bond” is more common in construction and “performance guarantee” in general commercial contracts.
The cost of a Performance Bond varies depending on the tenure required. It usually includes bank commission, processing fees, and other handling charges.
Contractors and suppliers are typically asked for one by project owners or developers before work begins, especially on larger construction and infrastructure contracts.
Yes, structuring the bond through a bank partner in a way that avoids blocking a client’s cash flow is one of the core things a trade finance consultancy helps with.
