+852 xxxx xxxx
info@sheratonins.com
Hong Kong
Hip Kwan Com. Building,Yau Ma Tei, Kowloon
08:00 - 17:00
Monday to Saturday
We have over 15 years of experience.
info@sheratonins.com
Hip Kwan Com. Building,Yau Ma Tei, Kowloon
Monday to Saturday
Bond is a type of guarantee provided by one to another for specific obligation. Bonds can be in the form of Capital Repayment Financial Guarantee or an insurance policy. Generally, bonds are sought by governing authorities, financial investment groups/ principals or customers against their loans creating a comfort and security leaving us full liability of the borrower, contractors or vendors or on certain projects to ensure performance of an assigned obligation or repayments.
Typical bonds are:
1. Bid bonds
2. Performance bonds
3. Capital Repayment Financial Guarantee Bonds
4. Advance Mobilisation bonds
5. Payment bonds
6. Loan Repayment Exchange Bond
It is critical to evaluate the type of bond required, obligations under the bid and the bid value itself to determine the risk exposure.
Mitigate the risk exposure that your business might suffer following a cyber-related security breach.
Indemnify yourself for any loss of money or property as a result of fraud, theft or dishonesty.
Protect the assets of your company directors and officers in the event of legal action against them.
Bid bond is a legal agreement that ensures contractors fulfill their stated obligations on a project. This form of assurance provides both financial and legal recourse to the owner of the project. Bid bonds are usually submitted in conjunction with the project’s contract.
Performance bonds are a subset of contract bonds and guarantee that a contractor will fulfill the terms of the contract. If they fail to do so, the Surety company is responsible for completing the contract obligations, either by securing a new contractor to complete the job or by financial compensation.
A payment bond is a type of surety bond issued to contractors which guarantee that all entities involved with the project will be paid. A payment surety bond is a legal contract, a type of bond, that guarantees certain employees, subcontractors, and suppliers are protected against non-payment.
Mobilization Advance bond is required by the project owner to ensure that the funds which have been advanced to the contractor will be properly utilized for the project work only. This guarantee covers the un-recovered amount of the bond by the project owner which has not been adjusted by the contractor or the bond value whichever is lower. Mobilization Advance Bonds are usually issued from the commencement of the project and not on the running projects.
Capital Repayment Financial Guarantee Bonds are financial bonds that ensure the obligor (Borrower) will make payment to the obligee (lender/investor) The term “Capital Repayment financial guarantee” is used by Bond underwriters to assign additional risk to financial bonds that contain some form of payment obligation. It is important to note; however, that Capital Repayment Financial Guarantee bonds guaranteeing principal and interest payments on a loan are typical of this bond.
A Loan Repayment Exchange Bond is a type of financial instrument issued by a borrower, often a corporation or government entity, to raise capital. These bonds are specifically structured to generate funds for repaying a loan or debt. Lenders who demand these bonds essentially provide a loan to the borrower in exchange for periodic interest payments and the eventual return of their principal investment upon maturity.