Q CAN I GET A PERFORMANCE BOND?
Some suppliers provide performance bonds (PB) and others do not, but may include a penalty clause in the contract. Generally, suppliers who provide Performance Bonds have slightly higher prices.
Each of our suppliers has a different policy regarding PB’s. Some will post the bond within a set time after your LC opens. Some will ask you to issue a non-operative LC that is triggered when the bond is posted. A PB will never post before the LC opens.