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Surety Bonds

Free up cash and improve your liquidity

Performance Bonds

A Performance Bond (Surety Bond) provides a financial security to the beneficiary, the project principal, against a contractor not performing, or defaulting, on a contract during the construction phase or defects period.

The bond facility limit is typically $2m plus, against which individual performance bonds are issued.

Bonds are widely accepted by the private and public sectors, (including federal, state and local government departments), as an alternative to bank guarantees.

Typical industry sectors:

  • Construction
  • Engineering
  • Mining
  • Oil and gas
  • Building

Key benefits of Performance Bonds

  • Release your cash for growth (i.e. take on more contracts), acquisitions or debt reduction
  • Unsecured, no tangible asset or collateral required
  • Improves your balance sheet and liquidity
  • Allows for greater flexibility and opportunities
  • Works alongside your existing bank facilities
  • Risk mitigation, less exposed to bank credit decisions or reviews
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Other types of bonds

  • Bid / tender bonds
  • Advance payment bonds
  • Retention bonds
  • Off site materials bonds

Who can qualify for a bond?

  • Typically a turnover in excess of $20 million
  • Must have a minimum net tangible worth of $1m
  • Strong industry experience, track-record and reputation
  • Positive cash flow
  • Positive working capital
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