RUSSEL MANAGEMENTWhat it does
An Advance Payment Guarantee protects a buyer or project owner that pays funds upfront. It supports repayment of the unearned portion if the supplier or contractor does not perform as agreed.
Where it is used
Mobilisation payments, manufacturing deposits, equipment orders, procurement and project contracts requiring an upfront release of funds.
How we approach the mandate
We begin with the underlying commercial requirement, proposed wording, amount, tenor, applicant, beneficiary and receiving institution. After compliance and feasibility review, the structure and execution pathway are agreed before any issuance process begins.
Typical structuring considerations
- Advance amount protection
- Reduction clauses where appropriate
- Delivery and milestone alignment
- Expiry tied to contract progress
Important distinction
The instrument must match the actual commercial obligation. Acceptance, issuance route, governing rules, claim conditions and bank-to-bank delivery requirements should be confirmed before execution. All services remain subject to due diligence, sanctions screening, institutional approval and applicable law.