Products & Services
Personal & Surety Bonds

Personal & Surety Bonds

Directors who sign personal guarantees put their own assets at risk, and cash collateral ties up working capital. Funding Strategies introduces clients to a specialist provider of Personal Guarantee Insurance and Surety Bonds — credit enhancement, landlord lease and performance bonds.

Personal Guarantee & Surety Bonds

Most Australian business owners are asked to sign a personal guarantee before a lender, a landlord or a project owner will proceed. That signature moves risk off the company’s balance sheet and onto yours — putting the family home, savings and other personal assets within reach of a creditor if the business fails. Guarantees also tend to outlive the facilities they supported, sitting quietly in place years after the original loan was repaid.

There is a parallel problem on the cashflow side. Landlords ask for cash bonds. Project owners ask for performance security. Lenders ask for collateral. Each request locks up working capital the business would otherwise be using to trade and grow.

There are established products that address both problems. Funding Strategies does not issue or underwrite them — they are provided by a specialist firm we work with under a referral arrangement. What we do is review your guarantees and security obligations, explain which products are likely to be relevant, and introduce you to the provider if it looks like a fit.

How we can help

• We review your existing guarantees, facilities and security arrangements to establish where personal exposure actually sits — which is frequently broader than directors expect, because legacy guarantees are easy to lose track of.

• We explain how each of these products works and which are likely to be relevant to your circumstances, so you can go into the conversation with the provider already informed.

• We make the introduction. From that point the provider handles the application, underwriting, pricing and issue of the policy or bond directly with you.

• Because we already work across debt financing, capital raising and restructuring, a review of your personal exposure can sit inside a broader funding strategy rather than being dealt with in isolation.

For more information, an overview is available here.

Disclaimer

Funding Strategies does not issue, underwrite or arrange the products described on this page. They are provided by a third-party specialist firm, and our role is limited to reviewing your circumstances and introducing you to that firm. The information on this page is general in nature, does not take account of your objectives, financial situation or needs, and is not financial product advice. Products are subject to underwriting, eligibility criteria and the terms of the relevant policy or bond. You should consider your own circumstances and obtain independent advice before deciding whether a product is appropriate for you.