What is Performance guarantee?
A Performance Guarantee is a binding legal document issued by a bank that confirms that a contractor will complete a contract to the terms and specifications as set out in the contract for a client. If a contractor does not complete their obligations as stipulated in the contract, the client will be guaranteed compensation.
In general, a company undertaking a contract awarded by the government is required to provide 5% of the value of a contract as a performance guarantee bond. This, in itself, is a significant undertaking as many other financial institutions and insurance companies have significant processes and requirements.
We also offer Advance Payment Guarantees – which work in a similar manner to Performance Guarantees except that that the government is entitled to reclaim the advanced payment made if the contractor does not complete the job awarded.
More about Factoring-i
Factoring is a sales and purchase transaction between a factor (the factoring company) and its client. As an intermediary, the factor purchases the client’s trade but gains ownership of the debts as well and in return allows the factor to collect payments from the client’s customers. To be clear, factoring is not a loan facility or is a factoring company a debt collection agency.
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Receive written confirmation (Letter of Offer, Letter of Award, signed contract) from the government on award of project.
Prepare three (3) signed copies of Arahan Pembayaran. The document should be signed by a government officer
Submit to IFSB
Compile the following documents and submit to IFSB.
IFSB will issue the Performance Guarantee to you within three working days*.
We offer competitive rates and a quick approval process. Fill out the form below and let us help you get the right funding to support your business needs.
Factoring financing is a great solution if you are seeking the financial stability that you need to improve your company’s credit score. There are more benefits to factoring than increasing your company’s cash flow.