Now is the time for companies to actively seek out opportunities to trade overseas secure in the knowledge they have the right Trade Credit Insurance to protect them, delivered by a knowledgeable and respected local expert; one who is part of a prestigious, experienced and highly regarded membership organization.
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Bonds and guarantees are written promises to pay for direct loss or damage suffered by a third party as a result of a breach of contract. Many types of bonds or guarantees are available for almost any area of risk, subject to underlying security and the risk being acceptable to the guarantor.
As international Specialist Brokers ICBA Partners have the local expertise to place bonds and surety in multi territories ensuring they confirm to local regulations and practice.
In many countries, surety and bonds are acceptable as an alternative to traditional bank guarantees.
The insured amounts for surety and bonds can range from six figure sums up to amounts in the multi-millions.
Please do not hesitate to contact us to discuss your Surety and Bonding requirements. With our expertise, experience and global reach ICBA Partners are here to help you and provide the best advice and guidance.
The ICBA gives us the needed platform to deliver even better service to our International Customers. We wanted to Partner with a global group of like minded companies to facilitate this.
Advance/Stage Payment Bonds
Advance/Stage Payment Bonds (APBs Guarantee) are especially prevalent in the engineering, manufacturing and construction sectors (although they are also used in other industry sectors). These APBs provide a guarantee to the customer that monies provided in advance of goods/services will be reimbursed if the contractor defaults.
Performance Bonds
A Performance Bond or Construction and Contract Guarantee Bond covers the damages suffered by the customer in the event of non-performance of the contract by the contractor. Performance Bonds are widely used across all industries and in the UK, for example, are usually for 10% of the contract price.
Retention Bonds
Retention Bonds or Maintenance Bonds are issued in favour of the employer or main contractor and can aid cashflow avoiding the need to pursue retentions after the completion of the contract. On some types of contracts, the contractor may also be asked to provide a Warranty Bond for the duration of the defects’ liability period.
Decommissioning Bonds
Typically owners of gas and oil assets are liable for the cost of decommissioning once production has ceased on a particular field.
As an alternative to providing a Letter of Credit from a bank which invariably ties up working capital facilities, a Surety Bond/Guarantee can be arranged which is generally on an unsecured basis and as such does not tie up valuable working capital facilities.
Duty Deferment/Customs Bonds
Goods imported from outside the EU are subject to import duty tax on arrival and this payment is usually due immediately. However, a Duty Deferment, Customs Bond or Movement Guarantee Bond allows importers to defer this payment for up to 45 days, providing greater flexibility and a cash flow advantage.
Payment Guarantees/Letters of Credit Replacement
In order to release working capital and avoid the need for security, it may be possible for you to obtain a Letter of Credit Alternative or Payment Guarantee from an insurance or specialist surety company.
Our client is the market leader in the thermal paper industry and has been our client since 2016. The turnover is close to 1 Bn € with clients all over the world. They were running a TCI (T…
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