Insurance vs Surety: An Information Bulletin

Darwin Clayton are now able to offer you competitively priced Surety Products offering a rapid response and solutions that do not eat into your Bank Facilities.

Performance Bonds

  • Usually require balance sheet details and completion of a simple enquiry form to obtain an indication within 24 hours.

Rent Guarantees (Tenant Default Indemnity)

  • Can assist in securing a lease on business properties.
  • The Rent Guarantee may replace a substantial cash deposit.

Retention Bonds

  • Retentions eat into a Contractor’s cash flow.
  • This can be substantially improved by the use of Retention Bonds.

Supplier Payment Guarantees

  • Obtaining credit from suppliers can be a major problem for small and medium sized companies.
  • This simple method ensures a smooth source of supplies safeguarding working capital levels.

Advance Payment Guarantees

  • Can help reduce borrowing and ease cash flow, allowing access to funds ahead of production, while providing the comfort and protection for customer’s advanced cash payments.

Deferred Payment Guarantees

  • In return for a fee, the Surety undertakes to pay a sum of money to the beneficiary, unless the party being guaranteed fully performs the contracted obligations.
  • The party being guaranteed (client of the Bond) in turn provides a counter-indemnity to the Surety.

  • This provides confidence and comfort to conclude deals for company acquisitions.

For further information contact your usual Account Executive.

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