The leading construction company in UAE required a Payment Guarantee in Construction to get the advance payment from their project owner. Bronze Wing Trading, an Advance payment guarantee provider, helped the contractor by providing the required bond without blocking their cash funds.
The Client Required Payment Guarantee
The Contractor received a million-worth building project from the leading project owner in Dubai. Further, to execute the work on the site, the client required advance payments from the project owner. But, to secure the advance payments, the project owner asked for an Advance Payment Bond from their client. So, they started searching for ways to avail the bond on their behalf.
Problems Faced in Availing Payment Guarantee
As a first attempt, the contractor asked their bank to issue the required MT760 on their behalf. But the bank asked for 100 percent of the bond value as cash margin to proceed with their request. Due to COVID-19, the client was unable to liquidate the cash funds at that time. So, they decided to get the MT760 Guarantee in other ways. At that time, they came across our newsletter, which we had released in the mid of April 2020. Further, it stated that “Despite Corona Outbreak, We Can Assist Traders / Contractors who are in Need of Trade Finance Services.”
Submit your APG Request to Us – Click Here!
After reading the newsletter, the client felt happy and visited our website to know more about our services. And, they read our process to avail MT760. Further, they filled the Advance Payment Bond request form on our website.
BWT Issued Payment Guarantee
Once we received the request from the client, our team studied their contract terms. Since they met all our terms, we conveyed our approval to them to issue the MT760. Then, we asked the client to sign the service agreement with us. Further, we asked them to pay the admin charges to start work on their deal. Due to curfews and lockdowns, the client was unable to visit our office directly. But anyhow, we managed to complete all the things online, and the process went smoothly without any issues.
Schedule Your Appointment Now to Discuss Your Bond Requirements – Contact Us Now!
The client signed the agreement and paid the admin charges to our bank account. After that, we blocked our bank limit and structured the required bond as per their contract. Further, we sent the draft of the required MT760 for their review. Then, the client approved the draft and paid the issuance fee charges.
Once we received the fee, we instructed our bank to issue the advance payment bond to the developer’s bank. Further, this was issued via SWIFT MT760 on behalf of the client and in favour of the project owner.
The Client Received Advance Payments
After receiving the MT760 in their favour, the project owner issued advance payments to the client to mobilize the work on the site. Also, the client felt happy with our timely service, which helped them avail the advance payment from the project owner.
With heartfelt thanks, the contractor said to us: “In this Corona outbreak, we didn’t ever think that the transaction would be done in such a smooth way without any issues. Great thanks to BWT for their timely support in issuing the Payment Bond on our behalf. Also, we are really thankful to the entire team. Further, we strongly recommend BWT to all those who are in need of an MT760 Guarantee for their building projects.”
Apply for BG MT760
Are you a construction contractor looking to get advance payments from the project owner? Get Trade finance for contractors from us. By providing APG MT760 on behalf of your company and in favour of your counterparty, you can get the required advance payments instantly without any delays. Contact us by submitting your APG request today!