Bonds - Deposit / Performance / Deferred Finance


Insurable ‘guarantee’ facilities for advanced payments made by customers prior to delivery of goods, or where goods are being supplied by suppliers prior to payment in full. See also ourTrade Finance page.

The ability to issue performance bonds or advance payment bonds can present obstacles to a business operating as a manufacturer, supplier, or contractor.

There are many instances where a company is willing to assume a risk but is not able to do so due to legal or regulatory hurdles.

We work with various insurers to provide the appropriate facilities which enable the desired risk transfer to take place.

Bonds can offer an alternative solution where a business has insufficient collateral (security) available for a bank to offer a ‘Bank Guarantee’ or ‘Letter of Credit’.

Banks may require additional asset or cash security before issuing guarantees on behalf of your business, or their guarantee to a third party on your behalf may form part of your existing credit facility, thus reducing your working capital.

traffic light 28494611


Performance Bonds

During the course of any manufacturing or construction process there is a possibility that financial strain on the supplying company may lead to insolvency and therefore failure to complete the contracted works. We provide our clients with Performance Bonds which guarantee the performance of the contract in such a situation.

Find out more about Bonds

Call 01508 494 345 or email us

earth and boxes 36198610

Deferred Finance

Many transactions involve a number of payments over time. The third party due to receive such payments are often concerned about what will happen if your business fails to make a payment due to insolvency. Our Deferred Finance products provide a guarantee that such payments will be made.


Benefits

Typically set at around 20 to 40% of the overall contract value – and payable in the event of non-performance or quality or delivery issues – the process of obtaining bonds can prove prohibitive to pursuing lucrative new business.

  • Protect your bank should your business become insolvent and therefore unable to honour the counter-indemnity, whether the bond has been called fairly or unfairly
  • Provide up to 95% indemnity for up to three years
  • Allow your cover to be structured pro-rata to the levels of collateral/insurance relative to the overall facility, or in excess of your collateral
Find out more about Bonds

Call 01508 494 345 or email us

What our customers say...

Thank you to the team at B2B for successfully sourcing finance packages for two of our new investments made in 2016.
Director - Dury's Environemental Services