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Surety Bonds

Surety Bonds

The main advantage of surety bonds is that they are accepted by the majority of the contractual counterparties in Italy and abroad. Companies are not obliged to lock up money, titles, bonds or other collaterals or to resort to other lines of credit than can be used for other purposes. All that at a reasonable price.

In order to issue surety bonds according to the Italian legislation (tenders, customs, tax refunds, waste disposal), we work with all the Italian and foreign companies that are authorized to transact surety business in Italy.

The Italian market is facing a long lasting and worrying crisis. As a consequence, the foreign market is gaining a key role for Italian businesses.

Over the last years, we have experienced a growing demand for guarantees abroad, due to a stronger approach of Italian businesses in finding new markets and their greater willingness to accept surety bonds as well as, on the other hand, the credit restrictions imposed by banks, together and the growing costs of bank charges and additional expenses (issue, processing, currency conversion…).

To satisfy the needs of our clients operating abroad, we have organized ourselves through collaborations with multinational or local companies and foreign correspondents, in order to guarantee the issue of surety bonds directly or by fronting companies and to get on-site assistance.

If a bank guarantee is requested, more and more often we are able to release part of the commitment through a counter-guarantee in favour of the bank.

For companies using sub-contractors for services or works or simply asking for a surety bond from their suppliers as a guarantee to ensure a punctual and correct fulfilment of a contract, we can implement a framework agreement with one or more qualified companies having proven solvency. The content of the surety bond is previously agreed upon with the client, which is also the beneficiary.

The result is the administrative optimisation of the active surety bonds: it is not longer necessary to verify the validity of the bond, the guarantor’s solvency or the effectiveness of the regulatory requirements that should protect the company.

As a consequence, there s a direct relationship with one or more selected insurance companies: as well as being third party guarantors, they also become business partners by assessing the supplier’s financial strength.

This offers the supplier a “turnkey” solution that, by facilitating and speeding up the procedures to obtain the surety bonds, improves the management and the business appeal of the contracts.

 

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