They act as an alternative to bank guarantees, protecting the beneficiary if the policyholder defaults on the contract, without the company having to allocate its credit capacity to a bank guarantee.
Advantages:
* Preserves cash flow, borrowing capacity, and credit lines with banks, thereby eliminating the accumulation of banking risk (not counted in CIRBE).
* Eliminates the need to tie up cash.
* Offers flexibility compared to bank guarantees.
* Lower cost; no application, opening, or cancellation fees.
* Increases your opportunities to carry out projects nationally and internationally.
* Issuance of cross-border surety bonds in Europe.
SURETY BOND INSURANCE
Surety bonds or surety insurance are guarantees issued by insurers that cover the fulfillment of the obligations of a policyholder (the applicant) to a beneficiary (the other party to a contract).
They act as an alternative to bank guarantees, protecting the beneficiary if the policyholder breaches the contract, without the company having to allocate its credit capacity to a bank guarantee.
Product benefits:
• Preserves cash flow, borrowing capacity, and credit lines with banks, thus eliminating the accumulation of banking risk (not counted in CIRBE).
• Eliminates the need to tie up cash.
• Compared to bank guarantees, it offers flexibility.
• Lower cost; there are no study, opening, or cancellation fees.
• Increases your opportunities to carry out projects nationally and internationally.
• Issuance of cross-border surety bonds in Europe.
