Bid bonds or Tender securities
A bid bond is a type of surety bond provided by a contractor or bidder to guarantee that they will honor the terms of a bid if they are awarded a contract. It serves as a form of security for the project owner (the procuring entity) to ensure that the bidder (the applicant/client) will enter into the contract and adhere to the terms of their bids. Should the bidder fail to adhere to the terms of the bid or withdraws from the tender process, the procuring entity at their own discretion may claim the bid bond amount from the issuing financial institution. We at Kixen, facilitate the issuance of these bid bonds or tender securities from approved financial institutions.
Performance Bonds
: A performance bond is a type of surety bond that guarantees the satisfactory completion of a project or contract according to its terms and specifications. It serves as a form of financial security for the project owner (the procuring entity) to ensure that the contractor (the applicant/client) will fulfil their obligations and deliver the project as agreed. This guarantee serves as a safeguard against non-performance for the procuring entity. We at Kixen, facilitate the issuance of these performance from approved financial institutions.
Learn MoreAdvance Payment Guarantees
An (APG) is a type of surety bond or financial instrument provided by a contractor or supplier to guarantee the repayment of an advance payment received from the project owner or buyer. It serves as a form of security for the project owner to ensure that the contractor or supplier will use the advance payment for its intended purpose and will fulfil its contractual obligations.
Retention Guarantees
Also known as a retention bond, is a type of surety bond or financial instrument provided by a contractor to guarantee the release of retention funds held by the project owner or employer. Retention funds are typically withheld by the project owner as security against any defects, faults, or non-compliance with the contract by the contractor.
Working Capital Finance:
This is funding provided to cover a company's short-term operational needs, including inventory purchases, payroll, and overhead expenses. Working capital financing is essential for businesses to maintain daily operations, manage cash flow, and support growth.
Supply chain financing
It is a comprehensive approach that leverages financial tools and technology to streamline and optimize the funding of trade and supply chain transactions. By providing access to capital for suppliers and extending payment terms for buyers, supply chain finance helps to improve cash flow, reduce costs, and strengthen the overall supply chain ecosystem.
Invoice Factoring
In invoice factoring, a business sells its accounts receivable (unpaid invoices) to a third-party financial institution, known as a factor, at a discount. The factor then advances a percentage of the invoice value (usually around 70% to 90%) to the business upfront. Once the borrower’s customer pays the invoice, the factor remits the remaining balance to the business, minus a fee.
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You send an invoice to your customer
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You submit the invoice to the factoring company
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The factoring company provides you with a cash advance that is worth 80% - 90% of the invoice face value
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Your customer pays the invoice
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The factoring company sends the remainder of the invoice value to you, minus a factoring fee