Bank Guarantees and Bonds

Choose The Type Of Finance Solution You Require From The List Below:
Performance Bond | Bid Bond | Construction Guarantee | Retention Guarantee | Custom Bond

The range of products available in the market, to insure against loss is almost unlimited and we, through various principles and underwriters, market the full range of guarantees, insurance products and bonds available in South Africa.

If what is described below, does not cover what you are looking for, then all you need do is fill in the no obligation enquiry form below and we will arrange for our specialists to make contact with you to provide a quote for a suitable product.

Cost Schedule

  • Minimum Term – 3 months
  • Maximum Term – 12 months
  • Minimum APR – 13 %
  • Maximum APR – 30 %

Example :

  • Loan: R 1 million
  • Term 3 Months
  • APR 36 %
  • Repayment R2 080 000

Subject to lenders Terms and Conditions at time of quote.

Performance Bond

A bond (guarantee) provided by one party of a contract to protect the interests of another party, in the event of non performance.

The supplier of the goods or service is normally required to issue a PB for the benefit of the importer or receiver of the goods or service. The guarantee amount can vary from 2 % to 10 % (or more) of the contract amounts.

The receiver of the goods / service can claim against this PB if the supplier of the goods does not perform in accordance with the trade contract, undertakings, agreements or LC’s.

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Bid Bond

When tendering on certain projects, suppliers of services or product are sometimes required to put up a guarantee that they can perform if called upon to do so or if they win the tender. If they do not perform when called upon to perform, then the Bid Bond is called up (paid).

Why use us for this product : Costs are lower than the average market player and our service provider is backed by the biggest insurance company in South Africa. We are fast, experienced and very competitive.

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Construction Guarantee

Most large construction projects require that the contractor provide a construction bond (guarantee) which can range from 2 % to 20 %. In the event of the contractor not fulfilling his obligations, the Construction Guarantee will be paid to the project owner, to assist in recovering losses incurred for an incomplete project but is subject to various conditions.

Why use our providers : In most instances our costs are cheaper. Interest is paid on the funds lodged (most banks do not do this) and rates form our service providers is much better than the banks can provide. Banks in most instances will not pay any interest on the fees and deposits called in terms of the guarantee. Our guarantee provider in this case is underwritten and backed by one of the largest insurance company in South Africa.

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Retention Guarantee

Many construction projects require that an amount of the final payment be withheld to be sure that the snags on the project will be rectified by the contractor. A guarantee is sometimes needed by the employer ( project owners) to insure for these costs.

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Custom Bond

Import regulatory authorities sometimes call for a bond (guarantee) to cover the costs of import duties, levies, taxes and other relevant charges. We can arrange these at a very reasonable rate.

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Other categories of guarantee policies:

To protect your investments you could consider some of the following :

  • Contract Works and Liability policies for both Civil Engineering and Building Projects
  • Construction insurance to insure the work completed on a construction project
  • Offshore construction and engineering policies in Euros, US Dollars, SA Rands or the currency of the relevant contract
  • Advanced Loss of Profits policy for construction risks such as hotels, shopping malls, office blocks, industrial warehouses and toll roads
  • Machinery Breakdown policies with Loss of Profit extensions
  • Our principles underwrite through all national and regional insurers and also some international underwriters that include Lloyds of London and have offices throughout South Africa.

Other financial instruments available are Bank Guarantees (MT760), Letters of Credit, Stand by Letters of Credit.

Click Here to be redirected to our page on these specialist products.