Indian contracts usually ask for a bank guarantee; US contracts usually ask for a performance bond. Both promise the buyer they will be paid if the work is not delivered — the difference is who stands behind the promise. A bank issues a guarantee against your credit line. A surety company issues a bond after assessing your business.
What to record for every instrument
- Issuer, beneficiary and contract reference
- Amount and currency
- Issue date, expiry date and claim period
- Margin money or collateral held
- Renewal and release conditions
Why expiry dates matter
A lapsed guarantee can stall a payment milestone; an unreleased one keeps your working capital blocked. Invoice360 keeps both in one register and reminds you 30, 15 and 7 days before expiry.