Advance Payment Bond

Business, Legal & Accounting Glossary

Definition: Advance Payment Bond


Advance Payment Bond


Full Definition of Advance Payment Bond


A standby letter of credit from a bank or a bond from a surety company, issued to a customer making an advance payment for a purchase or contract, which ensures a refund if the other party to the transaction is unable to fulfill the terms of the agreement. Advance payment bonds lessen the risk of a pre-payment arrangement.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/advance-payment-bond/
Modern Language Association (MLA):
Advance Payment Bond. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 29, 2021 https://payrollheaven.com/define/advance-payment-bond/.
Chicago Manual of Style (CMS):
Advance Payment Bond. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/advance-payment-bond/ (accessed: November 29, 2021).
American Psychological Association (APA):
Advance Payment Bond. PayrollHeaven.com. Retrieved November 29, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/advance-payment-bond/

Definition Sources


Definitions for Advance Payment Bond are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.