Benefits of Surety Bonds/Surety Bond Facilities
Bond Benefits are :
- Bonds are widely accepted form of contract security and accepted by the private sector, federal, state and local municipalities.
- Are flexible and operate alongside traditional banking facilities.
- Bond Facilities are unsecured (no tangible security or collateral is required).
- Bond Facilities allows Contractors to free up funds and reduce debt and tender for more contracts without being restricted by security requirements.
- Another bond benefit is that they are an alternative to bank guarantees.
- Bond Facilities allows the company greater financial flexibility by allowing the company to leverage of its capital base and therefore utilise assets more cost effectively.
- There is no upfront or establishment fees or ongoing fees payable, apart from legal documentation costs on establishment of Facility. Premiums on Bonds are only payable on usage.
- There is quick turnaround in issuing Bonds to meet contract deadlines.
- Provides the company funding flexibility / options by not having to utilise its banking lines.
