Need to provide a bond to your overseas buyer?
EFIC could help your SME export business to meet your buyer’s requirement
and free up your working capital
When you’re involved in international trade, you’ll often find that that an export contract requires you to provide a bond to the buyer. It may be an advance payment bond, performance bond or warranty bond, or more than one of these.
Bonds help to protect your buyer from loss if you don’t deliver your product or service on time or to the standard set out in the export contract. A bond may be a significant percentage of the value of your export contract – sometimes up to 100%.
How can EFIC help?
When your overseas buyer requests a bond, you’ll probably turn to your bank first. However, as security, your bank may ask you to provide the full amount of the bond in cash. Like many SMEs, you either may not have that kind of cash available or need to keep your working capital free for other uses.
If your bank can’t assist you with a bond, or requests an amount of security that you can’t provide, EFIC may be able to help.
The security we require may be less than the amount of the bond, as it is based on our assessment of your ability to perform the contract.
So a bond from EFIC could help you meet your overseas buyer’s requirements – without tying up all your working capital.
To find out more about our bonds, please complete the form below. EFIC assesses each potential client individually and we’ll contact you to discuss whether EFIC can help.