Euler Hermes > Bonding

Your business partners ask you for guarantees and securities to be certain that you will perform your contractual obligations. Bonding with Euler Hermes gives them the necessary security to start lasting and trustful business relations. 

This is a valuable document that is composed by your insurer or your bank, where it is stated that you will complete your obligations to your mandator.

When is bonding used ?

- In all sectors of the economy, to create contractual relationships between trade partners.
 
- When dealing with governmental institutions

In all of the above cases the beneficiary(company/governement/consumer) is searching for an extra security measure that will assure them of the completion of the contractual or legal obligations that you made with the beneficiary. 
If you don't fulfill these obligations, then the beneficiary of the bonding contract will demand a fee by claiming the guarantee. If the claim is correct, then Euler Hermes will pay the beneficiary.

 

Different types of bonding :

Contractual bonding
This insures the beneficiary, that you will fulfill your commitment.
 
Legal bonding
Euler Hermes helps with the coverage of the legal obligations both internationally and nationally including customs, taxes- and environmental administration.
 

 

Our name
Our bonds and guarantees have a good name as security beneficiaries around the world.

Extra credit space with your bank
By using the bond of Euler Hermes, you free space on your bank creditlines. These can be reused for the financing of your company activities. 

We garanty an excellent quality
Euler Hermes enjoys a AA-rating by Standard & Poors, this rating offers us the trust of our customers in our bonds and guarantee both internationally and nationally.

A large and experienced international network
Thanks to our own Euler Hermes network and our cooperation with Allianz offices we can offer "fronting in your own home" in 25 countries.
An international beneficiary will also try to gain a garanty at the lokal financial institutions. With our large network we can offer even on the international scale the best and fastest service.

Professional and personal advice
Our Euler Hermes specialists have a large knowledge of the markets, the guarantee texts, contractual obligations and the customs regulations.

Fast completion of all your demands

Our ​knowledge and expertise of each specific business sector enable us to provide you with tailored bonding solutions

Construction sector and manufacturing industry

The construction sector and manufacturing industry have always had a need for bonding products.  Our range of bonding products for you is as varied as your requirements.

Bid Bonds
In connection with public works tenders, as security that you as the contractor the work is awarded to will actually sign the contract and will undertake to perform the work as contracted.

Advance payment bonds
As security for the repayment of advance payments or payments made on account.

Supply and service bonds
As security for the obligation you have taken on as contractor to supply goods and services up to the point at which the object is handed over or accepted.

Performance bonds
To secure the supply of goods and the performance of services with or without a warranty period. They also trigger the repayment of warranty retention money, thus providing immediate liquidity to you as the contractor.

Maintenance bonds
As security that any defects discovered during the warranty period. They also trigger the repayment of warranty retention money, thus providing immediate liquidity to you as the contractor.

Bonds for joint ventures and consortia
Major construction contracts are often carried out by a consortium (joint venture) – which involves particular risk the companies participating in such a joint venture. Euler Hermes has long-standing experience of joint ventures and offers special joint venture bonds for the construction industry which take account of their needs.

These include arrangements to secure the internal liabilities of the companies towards each other. Euler Hermes provides a system at very favourable prices which avoids charging twice for premium and risk liability.​

Importers, carriers and food sector

​​Thanks to its in-depth experience, Euler Hermes has an extensive knowledge of the EU agricultural market and the special requirements in import and export.

 

We offer you customs bonds for presentation to the Customs and Excise authorities as security for the payment of customs and excise duty, import duties and VAT for :​

  • Deferment of import duty.

  • Deferment of the payment date for duties on spirits.

  • Bonded warehousing procedures.

  • The purchase, despatch or custody of goods subject to VAT.

  • Active cross-border processing of goods.

  • Temporary importation.

  • EU transit procedures. 


  • Advance payments on export duty reimbursement.

​​

Industry sector & capital goods

Euler Hermes can also deliver the right kind of bonding for those companies that have activities in the capital goods and the industry branche.

Prepayment bonds
As an insurance for the repayment of the recieved prepayments or the advances, in case you wouldn't complete your obligations vis-a-vis the mandator.

Maintenance bonds
This is an insurance that you as the contractor will take on the responsibility of the periodical repairs and maintenances after the delivery of the machine or installation. Or as a security measure to ensure that you will indeed perform the necessary repairs.

Edit the webpart to manage this rich text.

Be careful to save your webpart before saving and publishing the page.

Edit the webpart to manage this rich text.

Be careful to save your webpart before saving and publishing the page.