Surety Bonds are a genuine alternative to bank guarantees.
A surety bond is an unconditional, on-call guarantee from a highly rated financial institution. It can be provided in lieu of cash or a bank guarantee as security for the performance of a contract.
Unlike a bank guarantee, Surety bonds generally don’t require the support of fixed asset security nor do they need to be underpinned by other forms of collateral or cash. This makes them a great option when looking to best manage businesses capital requirements, provide greater liquidity reduce debt or more effectively allocate banking facilities to other areas of the organisation.
Bonds are extremely cost effective. They are able to be tailored to cater for a broad range of applications and are useful for across many industries from construction & engineering/heavy infrastructure to aviation and telecommunications.