Surety bonds carry an identical wording to a bank guarantee, following the Australian Standards AS2124 which is an unconditional and on demand undertaking. They also carry exactly the same obligations at law as a bank guarantee.
MBA Insurance Services utilises the services of leading Australian underwriters when applying for Surety Bonds.
General underwriting criteria:
a. Company must turn over at least $50 million per annum to be considered
b. Must have a minimum net tangible worth of $5 million
c. Positive cash flow/Positive working capital
d. At least 3 years of continuous profitability
e. Operating for at least 3 years
Enjoy greater financial flexibility.
Types of bonds:
|Bid / tender bonds|
|Advance payment bonds|
|Retention release bonds|
|Off-site material bonds|
We have your financial obligations covered:
Surety Bonds are the most efficient and cost effective way to finance your contract security obligations and are widely accepted by the private sector, federal, state and local municipalities.
Addressing the needs of large contractors:
FREE UP YOUR ASSETS
A surety bond is unsecured (i.e. no tangible security required) versus the typical ‘secured position’ of a bank.
IMPROVE YOUR LIQUIDITY
A surety bond allows you greater financial flexibility, by allowing your organisation to leverage your capital base (i.e. better utilisation of your balance sheet), thus enhancing working capital and opportunities to improve liquidity.
Surety bonds remove the need to have contingent liability (i.e. lazy capital) on your balance sheet.
REMOVE GROWTH CONSTRAINTS
Surety bonds help overcome the current ‘rationing’ of credit by financial institutions.
Contractors can take on more projects without being restricted by security requirements.
ENJOY GREATER FINANCIAL FLEXIBILITY
Surety bonds are a genuine alternative to traditional secured guarantee bank facilities.
They are designed to deliver a flexible and effective bonding program, operating alongside your traditional banking line of credit.
AS SECURE AS A BANK GUARANTEE
Surety bonds carry an identical wording to a bank guarantee, following the Australian Standards AS2124 document, which is an unconditional and on demand undertaking.
Surety bonds carry exactly the same obligations at law as a bank guarantee.
For further information please call:
Bill Korakis - National Business Development Manager (Surety)
Telephone: (02) 8586 3541 or Mobile: 0431 658 067