Want to free up your working capital?

 

Surety & Contract Bonds

In a market characterised by credit rationing, surety bonds are the most efficient and cost effective way to finance your contract security obligations. Here's how surety can help your business in Australia and New Zealand.

 

Contractors

 

• Flexibility
• Genuine bonding alternative to traditional secured guarantee bank facilities
• Designed to deliver a flexible and effective bonding program, operating alongside your traditional banking lines of credit
• Free Up Your Assets
• The bond facility is unsecured (no tangible security required), versus the banks' secured positions
• Improves Your Liquidity
• The facility allows greater financial flexibility by allowing your organisation to leverage your capital base (better utilisation of your balance sheet), thus enhancing working capital and liquidity opportunities
• Provides funding flexibility and options by not having to utilise your current banking lines for contingent liability (bonding) purposes (lazy capital)
• Removes Growth Constraints
• Provides certainty of capacity options in the current financial crisis
• Financial Institutions are rationing credit and this will have a material impact on business
• Close working relationship with analysts / underwriters
• Contractors can take on more projects without being restricted by security requirements

 

Beneficiaries / Principals

 

• A+ Rated
• Our preferred provider carries an A+ Standard & Poor's Credit Rating, which is equally if not more secure than most banks
• Safe as a Bank Guarantee
• Surety bonds carry an identical wording to a bank guarantee, following the Australian Standards AS2124 documents which is unconditional and on demand undertaking. Surety bonds carry exactly the same obligations at law as a bank guarantee
• Widely Accepted
• Surety bonds are widely accepted by the private sector, federal state and local municipalities

 

Click here for More Information on Surety and Contract Bonds