BCS provides consulting and brokerage services to our clients and we specialise in the Surety Bonds field. We assist our clients with managing their Bonding needs from start to finish. We utilise the strength of the Surety providers balance sheet to assist our clients.

Surety Bonds are a valuable alternative to Bank Guarantees and Cash Retentions as well as an effective way of increasing our clients’ capital base. Unlike Bank Guarantees, which are supported by collateral and tie up valuable working capital or other assets, Surety providers evaluate the performance risk of the client and its ability to meet contractual obligations.

Surety is a credit instrument known as a bond guarantee. It is not Insurance.

A firm called a “surety company” guarantees that a business corporation called a “principal” will carry out an obligation to a third party, called an “obligee”.

Surety Bonds can be unconditional, irrevocable, payable on demand or conditional, aligned to conditions precedent being met prior to a payment under the bond.

Types of Bonds include:

  • Performance Bonds
  • Maintenance Bonds
  • Retention Bonds
  • Mining Rehabilitation/Reclamation Bonds
  • Bid/Tender Bonds
  • Advance Payment Bonds
  • Environmental Bonds
  • Supply Bonds

Bonds are an accepted form of contract security for most principals, including local, state and federal government departments.

The Advantages of Bonds:

  • Free up credit lines
  • Improve cash flow and working capital for growth and investment
  • Improve liquidity
  • Free up assets for other purposes
  • Comply with contractual obligations/legislation

Who are the Surety Providers:

At BCS we only deal with companies who have an S&P rating of A- or better. It is an important element in the acceptance by the Principals that your surety is sound and has the ability to meet the provisions of their product.

How can I be considered?

  • Do you have a minimum turnover of $ m AUD
  • A solid trading record with a level of continuous profitability
  • Strong financial resources
  • Experienced and stable management
  • Technical capability to deliver your contractual obligations

If you would like to find out more and why a growing number of companies are engaging Surety as a genuine alternative to Cash or Bank Guarantees contact us at BCS.