What is a Bond Facility?
A Bond Facility is often a prerequisite for Australian exporters and companies providing goods or services to domestic export-related contracts.
We may be able to help by providing bonds to support your eligible export-related contracts. It is common for a buyer to require you, as their supplier, to provide bonds (or guarantees) as part of a contract.
Who are Bond Facilities for?
Our Bond Facility is available for eligible first time or experienced small and medium business exporters, and companies in an export supply chain.
You might not have the level of security that your bank requires to provide a bond facility for your export or eligible export-related contracts. We can either issue bonds directly to your buyer or provide a guarantee to your bank who will issue the bonds.
The types of bonds we can provide are:
Advance payment bonds - provide your buyer with security for their advance payment under an export-related contract.
Performance bonds - give the buyer of your product or service assurance that if you don’t meet your obligations under a contract the buyer can call on the bond to reduce its losses.
Warranty bonds - protect your buyer from loss if you don’t meet your contractual warranty obligations after the contract is completed.
US surety bonds - allow you to meet your US bonding requirements and compete more effectively by supplying a surety bond from our registered US surety bond issuer, Liberty Mutual Insurance.
Why choose our Bond Facility?
Our Bond Facility can support:
- multiple export contracts with different buyers
- your involvement in an export supply chain.