Bonds & Surety Guarantees

A bond is a legally enforceable financial guarantee given by a third party (the guarantor) to a purchaser (the client). It guarantees the obligations of a supplier of goods, works or services (the contractor) under a contract. The guarantor agrees to pay the client a sum of money if the contractor defaults on their obligations. The purpose of a bond is to help the client meet the extra expenses to remedy the default and/or complete the contract. There are several types of bond that S-Tech can arrange including:-

• Performance Bonds
• NHBC Bonds
• Bid Bonds
• Retention Bonds
• Section 38 & 104 Bonds
• Advance Payment Bonds
• Rent Guarantees
• Deposit Guarantees
• Deferred Consideration Bonds
• Bespoke Surety Products
• Rural Payment Agency Guarantees

Performance Bonds

Performance Bonds provide our clients with a financial guarantee to fulfil the performance of their contracts where there is a chance that financial constraints may lead to the Construction Company becoming insolvent and failing to complete the contracted works.

NHBC Bonds

This is a specific type of Performance Bond required by the NHBC when new companies register with them to cover NHBC Guarantees.

Bid Bonds

Bid Bonds guarantee the performance of the contractor in the event that they win a Tender

Retention Bonds

Contractors can offer Retention Bonds to Employers to get them to reduce the amount of retention required under the contract

Advance Payment Bonds

These Bonds cover employers who want to make a payment to a Contractor to purchase materials in advance but are concerned that if the contractor becomes insolvent during this time they will lose their money

Section 38 and 104 Bonds

These are Highways and Sewer Bonds required by local authorities

Rent Guarantees

Landlords, both Residential and Commercial, are always dependent on the ability and willingness of their tenants to pay. Our Rent Default Guarantee product not only ensures payment but also provides covenant enhancement thus increasing the value of the property

Deposit Guarantees (Tenants)

We can provide bonds in lieu of Tenant Deposits

Deferred Consideration Bonds

Many transactions involve a number of payments over time. The party due to receive such payments is often concerned about what will happen if the debtor fails to make a payment due to insolvency. Our Deferred Finance product provides a guarantee that such payments will be made

Rural Payment Agency Guarantees

Bespoke Surety Products

There are many other types of bonds we can offer.

To speak to one of our specialist credit brokers about any of the above products, please contact us now:-

Karl Ferre
karlf@s-tech.co.uk
01223 445442