Down payment guarantees at GfK
Guaranteed are claims of the principal for repayment of advance payments made against his contractor.
Companies that have agreed to down payments with their clients on the service to be provided, e.g., construction companies, building tradesmen, property developers and general contractors, mechanical and plant engineering companies.
The client makes a down payment to his contractor – for example, to coverage the costs of procuring materials.
The risk of loss of this advance payment – e.g. due to insolvency of the contractor – is coverage by the advance payment guarantee.