Construction Bonds Insurance
A Surety Bond is not an insurance product: it guarantees the beneficiary protection in the event the principal fails to meet their obligations.
Surety Bonds Versus Bank Bonds
Obtaining a bond through the bank impacts a business as they form part of the overall facility. In addition, banks charge arrangement fees upfront in addition to the cost of the bond.
A Surety Bond does not affect working capital or bank borrowing facilities, and only the performance risk lies with the surety. In doing so, builders and developers protect their lines of credit with banks and allow for a steady flow of working capital as needed.
In the long run, surety bonds usually end up being more cost-effective and they allow applicants more flexibility with their asset.
The benefits of our Surety Bonds:
- They are often mandated in the contract
- Help release capital on day one
- It can help our clients win more contracts
Construction bonds allow for a more efficient capital solution and management of working capital.
The team at J3 advisory can assist with almost any bond, some of which include:
- Performance bonds
- Bid bonds
- Deposit bonds
- Defects Liability Bond