Surety Bonds

Contract Performance / Surety Bonds offer an alternative to bank guarantees. Unlike a bank guarantee, Surety bonds do not tie up assets as security. This makes Surety an extremely useful and flexible financing tool, particularly in a capital-constrained market.

There are numerous underwriters in this market, that provide for varying types of contractors.
  • Genuine bonding alternative to traditional secured guarantee bank facilities.
  • Designed to deliver a flexible and effective bonding program, operating alongside your traditional banking lines of credit.
Frees Up Your Assets
  • The bond facility is unsecured (no tangible security required), versus the banks’ secured positions.
Improves Your Liquidity
  • The facility allows greater financial flexibility by allowing you to leverage your capital base, thereby enhancing working capital and liquidity opportunities.
  • Provides funding flexibility and options by not having to utilise your current banking lines for contingent liability purposes
Removes Growth Constraints
  • Contractors can take on more projects without being restricted by security requirements.
Surety bonds carry an identical wording to a bank guarantee, following the Australian Standards AS2124 document which is an unconditional and on demand undertaking.
Surety bonds carry exactly the same obligations at law as a bank guarantee.

Widely Accepted
Surety bonds are widely accepted by the private sector, federal, state and local municipalities

Interested?… give us a call!
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ATC Bond Application Form