Select the bond or guarantee you would like to apply for from the below list:


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

Bid Bond

When tendering on certain projects, suppliers of services or product are sometimes required to put up a guarantee that they can take up the contract if called upon to do so or if they win the tender. If they fail to perform when called upon to do so, 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.

Features of BG’s:

  • Guarantees compensation to the client if the bidder fails to start a contract (project). 
  • Provides legals and financial protection to the client
  • It is a legal agreement ensuring bidders fulfill their project obligations 
  • It is mostly used in construction projects 
  • Backed by specialised surety companies 


What are Bid Bonds Used For?
  • Construction projects
Are bid bonds returned?

Yes, once the project is completed as per the contract, the bond amount is returned. 

Construction Bonds

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 are 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 companies in South Africa.

Performance Guarantee

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

The supplier of the goods or service is normally required to issue a Performance Guarantee 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 performance bond if the supplier of the goods does not perform in accordance with the trade contract, undertakings, agreements or LC’s.



PAUSE!! Please check you are applying for the correct product:

For Bonds Of Security (Liquidation/Estates/Curator/Executor/etc) please apply here: https://nhfinance.co.za/executor-bonds-bonds-of-security/

For Bank Guarantees, SBLC’s, LC’s please apply here:   https://nhfinance.co.za/bank-guarantees/

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.