Surety bonds & guarantees
Do business and reassure your partners
Four good reasons to choose our surety bonds
- Reassure your partners as to your ability to meet your commitments
- Gain access to special and regulated markets
- Qualify to bid on a request for proposals
- Maintain your borrowing capacity with your bank or your cash position by postponing a payment through a customs surety bond
Trust and obtaining rights in some activities are key means of doing business.
Whether it involves bidding on requests for proposals, importing, exporting or performing certain transactions, companies are in need of guarantees.
Coface helps you to win contracts by offering a line of special surety bonds divided into two main groups:
- contract surety bonds;
- customs and excise surety bonds.
Delivering a valuable solution…
A construction company has won a contract to renovate a shopping centre. The centre’s owner has requested a guarantee retention surety bond of 5% of the amount, guaranteeing the proper execution of the work and assumption of responsibility for all repairs and finishing work.
Earlier, Coface had signed a Bonding Agreement with the construction firm, and will therefore provide the surety bond. The construction firm is therefore certain of being paid the full contractual amount and not to have to put up this surety bond itself. It thereby preserves its working capital and can focus on the investments needed to purchase equipment and pay its workers.
If the surety bond is called, Coface will advance the amount stipulated in the guarantee agreement to the company that owns the shopping centre.
Specifically, following the signature of an agreement, Coface establishes a line of contract surety bonds subdivided into sub-lines: advance payment surety bond, subcontractor payment surety bond, completion bond and guarantee retention bond, that are used as needed for contracts entered into by the construction company.