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How to Get Performance Bond

We, the Performance Bond Providers in Dubai ,can support your exports or projects by providing a Performance bond on behalf of the seller / Contractor.

To apply for MT760 from rated banks, please follow the simple process given below:

  1. The client submits their MT760 request to us along with the pro forma invoice or contract of their deal./li>
  2. Secondly, Steppe Group L.L.C. will analyze the deal between the parties involved. Then, we will inform the parties about the approval of the request.
  3. If their request is approved, the client needs to sign the service agreement with us. Also, they need to pay service charges to start work on their bond request.
  4. Further, once the agreement is signed & services charges are paid, we will start structuring their transaction with our bank; by blocking our bank limit, as per their deal.
  5. Then, we will send the PB draft for the client’s approval. Also, we will inform them to provide the issuance fee and the documents related to their deal.
  6. After receipt of the documents, signed draft, and issuance fees, we will proceed to the final step. i.e., we will instruct our Bank to provide the Performance Bond from our account on behalf of the seller or contractor. And this MT760 will be issued in favor of the buyer / project owner within 48 hours.

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Apply for Performance Bond MT760 without Blocking Your Cash Funds

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What is Performance Bond?

Performance Bond or Performance Guarantee or Surety Bond is a Bank Instrument issued by a bank on its clients’ behalf to assure their performance as per the stated contract or trade deal. This type of bond is mostly used in construction projects. Here, the contractor provides this bond in favor of the project owner; to assure the positive completion of the work on the project. Further, this protects project owners against any claim; in case of non performance by the contractor; against the agreed contract. As a result, the main aim of this bond is to assure the project owner; that even in case of any default – such as bankruptcy or any events, the work will not be stopped. At the same time, Performance Bond also plays a vital role in trade. This is issued by the seller; in favor of their buyer before opening the DLC MT700 from their end. In this way, the issued bond MT760 will act as a guarantee that the goods will be supplied, once the seller receives the DLC MT700 at their bank counter. Getting such bonds from banks can be tough; as they will demand you to block 100% cash funds. We, the Performance Bond Providers in Dubai are aware of these difficulties; and so, we’re ready to provide you the required MT760 without blocking cash funds.

How do Performance Bonds work?

When entering into a contract or trade deal, the contractors or the sellers are required to provide a Performance Bond. And this assures their commitment to complete the task on time. Further, this bond also assures the project owners; that in case of any default against the contractor or seller; then the counter party can claim the bond. Further, this bond also works in such a way to give full protection to the project owner or buyer; by stating that the work or the supply will not affect; even if the contractor or the seller declares bankruptcy or faces other fiscal issues that would preclude them from completing the work. Since this bond gives utmost protection against contractor’s or seller’s default; having a Performance Guarantee is one of the most required documents to sign worthy contracts and trade deals.

Performance Bonds in Construction Contracts

Mostly, the contractors use Performance Bonds in construction contracts. For instance: if you won the bidding process; the project owner may demand you to provide a bank guarantee MT760; before you start working on the project. This is to assure your performance and also, to give protection to project owners against any default. Usually, when it comes to availing BG MT760, contractors contact their bank with their BG requests. The bank will consider their request and issue the BG; only if they have the Bank Facilities available; or have enough cash funds to block as collateral in their account. In case, if you face a lack of cash funds to block in your account to avail a Bond from your bank; then you can contact us with your request. To apply for MT760s, you can submit your requirements here. Applying for a performance bond with us is pretty simple. If you have all the paperwork done and paid the charges on time; then we can complete the issuance process in 2 working days.

Parties Involved in BG MT760

There 3 parties involved with MT760 and they are:-

  1. Principal: Also called as Contractor or Seller; they are the ones who request the bank to issue the Bond which assures their commitment; to complete the project or a supply of goods on time.
  2. Obligee: The project owner or buyer who receives the bond in their favor from the contractor or the seller.
  3. Bank: Who issues the bond; and assures the project owner or the buyer that the contractor or seller will perform the tasks as per the contract terms.

How Much Does a Performance Bond Cost?

The cost of a Performance Bond varies based on the tenure of the required bond. Usually, it includes bank commission, processing fee, and other handling charges. Further, the client should bear the charges. Also, to be noted that before issuance, the bank will debit these charges from the applicant’s account.

Performance Bond Providers in Dubai

Steppe Group L.L.C., the Performance Bond providers in Dubai are here to assist clients globally to avail Performance Bonds without blocking cash funds! For the past 30 years, we have helped more than 25,000 traders and contractors to support their trade deals and contracts.

How to Get Performance Bond without Blocking Your Cash Funds

If you want to ensure your fulfillment towards your project owner or buyer; then provide a Performance Guarantee on your behalf and in favor of your counter parties. Having such Bonds assures the satisfactory completion of the project or trade deal. So, How to Get Performance Guarantee Bond on your behalf without investing cash funds? That’s what, we have explained in this video.

The Role of SBLC Transaction in International and Domestic Trade

Standby Letter of Credit is considered to be the most popular method of payment guarantee used by traders to facilitate their global or domestic trade transactions. Since it helps traders to conclude their deals without facing cash flow issues; also assists to reduce the fiscal risk involved in global trade. The traders mostly prefer to use SBLC Transaction as their payment terms.

What is Performance Bond?

Performance Bonds are a written undertaking issued by a bank on behalf of its client to ensure the positive completion of the project or product supply. When your company starts bidding for a building project or a bulk trade deal; you will be expected to provide an MT760 Guarantees. And this ensures that you will oblige to the terms as stated in the contract, without fail. Further, having this MT760 not only assures your performance; but also assures that you will be liable to pay losses; in case if you deviate from the agreed contract.

How to Get Performance Bond

Usually when you contact your bank to get MT760 on your behalf; then there will be some T&Cs that you should oblige. It includes – depositing a certain percent of the bond value as a cash margin; or providing any tangible collateral. On the other hand, obliging to these banking demands is really daunting task, that’s why traders or contractors often look for Performance Guarantee Bonds providers, who can provide MT760s without blocking cash funds. So, are you looking to get Bank Guarantee from European Banks without blocking your working capital? Then, Steppe Group L.L.C., the Performance Bond Providers in Dubai would be the right choice for you!

Steps on – How to Get Performance Bond

  • Submit your PB MT760 request to us.
  • We will study your contractual agreement. And if it meets our terms, we will approve your request.
  • Then you need to sign the service agreement and pay the service charges.
  • Further, as the next step, with the help of our bank, we block our bank limit to structure your PB request. And then, we will send the draft for your review.
  • Once you approve the draft and pay the issuance fee, we will instruct our bank to issue the required Guarantee to the developer’s / buyer’s bank account via SWIFT MT760.
That’s it! By following these simple steps, you will be able to get the required bond from European Banks without blocking your cash funds.

Apply Performance Bond

Getting Performance Bond on behalf of your company is easier than ever before with the help of Bronze Wing Trading, the Performance Bond Providers in Dubai. There is no need to block your working capital to get the MT760; rather, we will block our own Bank Limit & will get the PB MT760 issued on behalf of your company & in favor of your counterparties in 48hrs! Apply for Performance Bonds now and get ready to acquire worthy projects and deals!