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In civil construction projects advance is given to the contractor which is known is as Mobilization Advance. It is normally 15% of the total contract value. The prerequisite for the issue of advance is that contractor has to provide a guarantee in the shape of Bank or Insurance equal to the amount being issued to the contractor. Mobilization advance is deducted from the bills of contractor in equal installments covering the project period. On completion of recovery Guarantee provided by the contractor is released.
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What is advance payment guarantee?
buyer will sometimes make an advance payments to the seller to enebled them to start acquisition or production of goods.
What is an advance payment?
An advance payment is a part of a sum which is paid or received in advance for goods and services.
What is the type of check that has a bank's guarantee payment?
Banking check obviously
When have the bank to pay a guarantee?
depends on the wording, usually there has to be a message sent to the bank that the guarantee case is active and payment is demanded. There are so many different bank guarantees (rent payment, court case payment, bail, loan repayment, damages, contract, performance, clean straight payment....) that only a very general answer can be given here
What's the difference between a bank guarantee and a letter of credit?
Letter of credit is a financial paper for guaranteed payments, whereas a bank guarantee is a guarantee given by the bank to the beneficiary on account of the applicant, to begin payment if the applicant defaults in payment. If you're looking for one, then Pepagora Trade Finance offers these services
What is advance payment guarantee?
buyer will sometimes make an advance payments to the seller to enebled them to start acquisition or production of goods.
Meaning of mobilisation advance?
A mobilization advance is an advance given to a contractor. Any interest fees should be clearly noted in the tender document.
What is the types of letter of guarantee?
There are several types of letter of guarantee that include: 1. Tender Bond/ Bid Bond 2. Performance Bond 3. Advance Payment Bond 4. Retention Money Bond 5. Maintenance Bond 6. Financial/ Payment Bond
What is an advance payment?
An advance payment is a part of a sum which is paid or received in advance for goods and services.
What is the difference between advance payment and down payment?
Down Payment: Payment, which is a loan in advance with no securities for the borrower or the buyer. Advance Payment: Payment which is connected with respective responsibilities. That means that the borrower or buyer gets some securities from the lender or vendor.
Difference between Advance Payment Guarantee and Performance Bond?
Contract Performance Bonds - Contractors will usually be asked to provide a performance bond for up to 20% of the contract price to protect the employer.Advance Payment Bonds - In circumstances where advances are being given before work is carried out or material delivered an advance payment bond protects the party making the advance recover the funds if the work is not completed or materials are not supplied.
How do you treat interest on advance payment of tax in financial statements?
there is no interest on advance payment of tax
What is the Journal entry for purchase of asset by advance payment?
Debit advance payment for assetCredit cash / bank
What do you understand by advance tax payment did government provide any special bonus on advance payment of tax?
Advance tax payment is paying of tax to the government in advance, before the year ends. The government do not provide special bonuses.
Meaning Advance Payment Tax?
Advance payment of tax means to pay tax along with the earning of his income this tax is paid on the current year income in the same year .In fact, it is paid as advance and it is called advance payment of tax
What type of check guarantee services are offered by the company Payment Solutions?
The company Payment Solutions offer three guarantee services for checks. Check guarantee for auto dealers, check guarantee for retailers and check guarantee for building materials & supply companies.
What is advance payment upon delivery?
You pay in advance then it will be delivered!
