Surety Bonds

Free up cash and improve your liquidity

Surety Bonds

A 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.

This product is only applicable for ‘wholesale’ clients as per the Financial Services Legislation Amendment Act 2019.

Typical industry sectors:

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

Key benefits of Surety 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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