Domestic Bonds

Domestic Bonds

Bonds help acquire orders and, in many cases, are a precondition for successful conclusion of a contract. For all entrepreneurs planning to enter tenders and conclude contracts for the delivery of goods or services we offer a wide range of domestic contract bonds:

• bid bonds
• performance bonds
• warranty bonds
• advance payment bonds

Bonds are mutually advantageous for beneficiaries and entrepreneurs.

With respect to a beneficiaries, bonds are the simplest and most reliable form of securing any future claims, ensuring that due funds will be paid quickly and unconditionally.

As far as entrepreneurs are concerned, bonds relieve company of the necessity to engage its own financial resources, allowing it to take part in many tenders simultaneously.  Also, bonds allow the entrepreneur to meet the contractor’s requirements to provide collaterals to fulfill the contract, or repair faults during the warranty period.  Last but not least, bonds confirm a positive assessment of the company’s financial standing by an independent financial institution, thus increasing the entrepreneur’s business credibility.         

Key benefits

• bonds relieve  entrepreneur of the necessity to provide additional collaterals for the performance of a contract
• as opposed to bonds issued by a bank, here the company’s credit line is not charged
• bonds increase the entrepreneur’s credibility in relation to his contractor
• in many cases bonds are a precondition for successful conclusion of a contract

Entities eligible
Bonds are available to all Polish entrepreneurs taking part in tenders and carrying out contracts for the delivery of goods or services.

Scope of beneficiaries
Contractors based in the Republic of Poland.

Costs
Fees for issuing bonds are negotiated individually and are mainly determined based on the value of the guaranteed sum, as well as by the type of collaterals provided.

Issuing of bonds
We have prepared two types of agreements relating to domestic bonds:

• agreement regulating the issuing of an individual bond relating to a single beneficiary
• framework agreement for companies planning to apply for multiple bonds.

Framework agreement allows for a fast issuing of bonds within the upper limit of the guaranteed sum as defined in the agreement.  We propose a unique solution which allows entrepreneurs to flexibly apply for bonds based on the current needs of the company.  The upper limit of the guaranteed sum is set based on the company’s financial standing.