Need a bond to secure your next contract?

How can a bond support your business growth?

As the Australian Government’s export credit agency, we are able to provide a range of bonds to support businesses to secure Australian-based, export-related contracts or fulfil contracts with international clients. We require minimum security cover for bonds, which means your working capital isn’t tied up to meet your contract requirements.

Businesses across Australia have worked with our team to get the security they need to take on more contracts and larger projects, including:

• Alltype Engineering

Utilising both performance and warranty bonds, Alltype Engineering secured contracts with APA group and Lynas Rare Earths. Prior to this, Alltype Engineering’s largest contract was circa $40 million, but this jumped to $145 million with bonding support.

• Furnace Solutions

Another example of an Australian business that has utilised a bond to grow in the sector is Furnace Solutions. The business required three bonds for the initial delivery, practical completion and the 24-month defect liability period for the BHP Olympic Dam Facility – a major contract in the export-supply chain.

Securing the support you need for your next contract

At Export Finance Australia, we can provide bonds directly to your buyer or a guarantee to your bank to support a bank-issued bond.

We have different types of bonds to support your business with various contract requirements, including:

• Advance payment bonds: while down payments or upfront deposits are increasingly uncommon, some contractors or suppliers do request them. When a payment is made in advance, before materials or work are provided, the buyer/project owner may request a guarantee in the form of an advance payment bond.
• Performance bonds: assurance that if you don’t meet your obligations under a contract, your buyer can call on the bond to reduce losses.
• Warranty bonds: for obligations following the delivery of goods or services, a warranty bond protects your buyer for the length of the warranty period specified in the contract.
• US surety bonds: surety bonds assure the buyer/project owner that the exporter/contractor is qualified and capable of performing the contract in the US.

If you would like to learn more about the options for your business or how we can support your next contract, call us on 1800 093 724.

Explore more about our solutions for businesses in the mining and construction services sectors here.