An overseas buyer will often require you to provide a bond (or guarantee) as part of an export contract. Bonding is also often a prerequisite for Australian subcontractors providing goods or services to domestic export-related contracts.
Bonds assure your buyer that if you don’t deliver under the contract, any upfront payment they have made will be recovered or funds are available to them to reduce their losses.
There may be occasions where your overseas buyer requires an unconditional or ‘on demand’ bond. Under these bonds, the buyer doesn’t need to show proof of default before demanding payment on the bond.
Our bond insurance can protect you from the risk of your bond being wrongfully called due to events outside your control.
Under our bond insurance policy, if we are satisfied that you are not in breach of your obligations under the contract, you may be covered for up to 95% of that loss.
- Gives you greater confidence to enter into export contracts with new buyers
- Peace of mind that if your bond is wrongfully called, you won’t be liable for the bond’s full value
- Makes you more competitive, especially in unfamiliar jurisdictions