Q: What is advanced payment guarantee?

Ans: Advanced payment guarantee is a guarantee that was given by company in advance to the government agency or any other agency that outsources the project.  
For instance: The company would like to purchase some equipments worth Rs 1 crore and for that the company demands the agency Rs 1 crore from agency. The agency provides company an amount of Rs 1 crore and the company provides bank guarantee in consideration of Rs 1 crore. In case contract is not fulfilled,  the advance payment guarantee will be invoked.
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