Stening Simpson Surety Bonds make construction more profitable.
Global Surety Bond Capabilities
We are pleased to announce that we can now offer Global Surety Bond capabilities into the following countries:
- New Zealand
- Pacific Islands
- United Kingdom
- Hong Kong
In addition, we can also issue bonds into various countries in the EU and states in the US.
If you have a Project overseas that requires a Contract Performance Bond to be issued, whether in a country listed above or any other country, please contact us.
Unprecedented $20m Turnover Surety Bond Facility
Previously in the Australian Surety Market, Underwriters would only consider companies with turnover in excess of $30m (realistically $50m) with net assets of $5m.
We now have available to us, an “A” rated Underwriter who will consider companies with turnover of $20m. This is unprecedented in Australia.
This means that the smaller quality companies and sub-contractors will now be considered for a Surety Bond Facility, providing the same benefits as the larger companies are currently enjoying.
If you meet the following criteria or you know of a company that meets the criteria, do not hesitate to contact us:
• Revenue of at least $20 Million per annum (an average of $20 Million over a 3 year period);
• Must have a minimum net tangible worth of $1 Million;
• Positive cash flow;
• Positive working capital;
• At least 3 years of continuous profitability;
• Operating for at least 5 years.
The Underwriter is also able to provide Bank Fronted Guarantees (within the Surety Bond Facility) should a Surety Bond not be acceptable to a Principal, which allows the Surety Bond Facility to be deployed more efficiently.
Benefits of Surety Bonds/Surety Bond Facilities
- 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.
- Bonds 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.