A Performance Guarantee (PG) is a bank-backed commitment that protects the project owner if a contractor fails to fulfill specified contractual obligations.

HOW IT WORKS
Contract Award → PG Requirement → Bank Assessment & Contract Banking Fee → PG Issuance → Project Execution

1. Contract Award — Client requires a Performance Guarantee.
2. Bank Assessment — Bank reviews the contractor, contract, and transaction.
3. PG Issuance — Approved bank issues the guarantee in favor of the beneficiary.
4. Project Execution — Contractor performs its contractual obligations.
5. Release / Claim — If obligations are fulfilled, the guarantee expires or is released. If a covered default occurs, the beneficiary may make a claim according to the guarantee terms.

WHY MARUTI ASSOCIATES?

Contract-Specific Structuring • International Banking Relationships • Collateral-Free Structuring Options

Only a limited number of banks are willing to undertake the higher level of risk associated with large-scale contractor and project guarantees.

Maruti Associates — Structuring Financial Solutions for Global Trade, Infrastructure & Projects Since 2001.

A Bid Bond is a bank-backed guarantee that demonstrates a bidder’s commitment to honor its bid and enter into the contract if selected.

HOW IT WORKS

Tender Issued → Bid Submitted → Bank Assessment & Contract Banking Fee → Bid Bond Issued → Bid Evaluation → Contract Award / Expiry

1. Tender Issued — Project owner requires a Bid Bond.
2. Bank Assessment — Bank reviews the bidder, tender and transaction.
3. Bid Bond Issuance — Approved bank issues the guarantee in favor of the beneficiary.
4. Bid Evaluation — Bidder participates in the tender process.
5. Award / Expiry — If successful, the bidder proceeds with the contract and required guarantees. If unsuccessful, the Bid Bond normally expires or is released according to its terms.

WHY MARUTI ASSOCIATES?

Contract-Specific Structuring • International Banking Relationships • Collateral-Free Structuring Options

Only a limited number of banks are willing to undertake the higher level of risk associated with large-scale contractor, infrastructure and project guarantees.

Maruti Associates — Structuring Financial Solutions for Global Trade, Infrastructure & Projects Since 2001.

An Advance Payment Guarantee (APG) is a bank-backed guarantee that protects a buyer or project owner when an advance payment is made to a contractor or supplier.

HOW IT WORKS

Contract Award → Advance Payment Agreed → Bank Assessment & Contract Banking Fee → APG Issued → Advance Released → Project Execution → Release / Claim

1. Advance Payment — Buyer agrees to provide an advance to the contractor or supplier.
2. Bank Assessment — Bank reviews the contract, applicant, and transaction.
3. APG Issuance — Approved bank issues the guarantee in favor of the beneficiary.
4. Advance Released — Buyer releases the agreed advance against the guarantee.
5. Project Execution — Contractor uses the funds for the contracted project or supply.
6. Release / Claim — As the advance is recovered or obligations are fulfilled, the guarantee reduces, expires, or is released. A covered default may allow the beneficiary to make a claim according to its terms.

WHY MARUTI ASSOCIATES?

Contract-Specific Structuring • International Banking Relationships • Collateral-Free Structuring Options

Only a limited number of banks are willing to undertake the higher level of risk associated with large-scale contractor, infrastructure, and project guarantees.

Maruti Associates — Structuring Financial Solutions for Global Trade, Infrastructure & Projects Since 2001.

A Deferred Payment Guarantee (DPG) is a bank-backed guarantee that secures future payments due from a buyer or borrower to a seller, supplier, or lender.

HOW IT WORKS

Contract Agreement → Deferred Payment Terms → Bank Assessment & Contract Banking Fee → DPG Issued → Goods / Services Delivered → Scheduled Payments → Release / Claim

1. Payment Terms — Buyer and seller agree on future or installment payments.
2. Bank Assessment — Bank reviews the contract, applicant, and transaction.
3. DPG Issuance — Approved bank issues the guarantee in favor of the beneficiary.
4. Transaction Execution — Goods, services, or project work are delivered.
5. Scheduled Payments — Buyer makes payments according to the agreed schedule.
6. Release / Claim — Once obligations are fulfilled, the guarantee expires or is released. In case of covered non-payment, the beneficiary may make a claim according to the guarantee terms.

COMMON USES

Equipment Purchases • International Trade • Large Commercial Contracts • Infrastructure Projects • Project Finance

WHY MARUTI ASSOCIATES?

Contract-Specific Structuring • International Banking Relationships • Collateral-Free Structuring Options

Only a limited number of banks are willing to undertake the higher level of risk associated with large-scale trade, infrastructure, and project guarantees.

Maruti Associates — Structuring Financial Solutions for Global Trade, Infrastructure & Projects Since 2001.