A range of bonds adapted to your business needs
Four good reasons for Bonds:
- Effectively submit business tenders
- Guarantee your partners that you can meet your contract obligations
- Acquire new customers and access new markets
- Maintain credit arrangements with your bank and improve your Working Capital.
Gaining trust and acquiring rights are often the key to success.
Whether it be the submission of a tender, covering payment in advance or meeting contract obligations, businesses require guarantees.
A tender submission can often require as an acceptance criteria a bid bond as proof of your financial capability. Often these are large sums of short duration.
The Coface bond will be accordingly issued promptly and without compromising your working funds with any bank.
Contracts which involve long production times are often agreed with part payments linked to the project progress. To protect against over payment the contractor will retain an agreed percentage until the final payment is due. With the retention bonds from Coface you will receive all part payments without deductions as our bond covers any overpayment on the contractor’s side.
On contract completion you must guarantee that the goods or services provided are free of faults. As security the contractor will retain an agreed percentage of your final invoice.
The Coface bond ensures that the complete invoiced amount will be available immediately as we provide your contractor with the appropriate guarantee.
More and more often customers are looking for a guarantee that the contractors performance will meet his contractural obligations. These highly detailed bonds represent a high risk for a contractor in that even one single issue can mean that the contractors responsibilities remain unfulfiled.
You will receive a larger order and ask the client for a deposit payment. The deposit payment allows you to procure material, components, staff, etc. for product manufacture. The client is willing to pay the deposit, but he wants to ensure that the money is refunded if the order-contract is not completed.
Should you be faced with unusual bond requests from your business partners, simply get in touch with us. As specialists we are also able to offer unusual solutions and alternatives.