Bonds and guarantees

Guaranteed payment for you and your customers
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What are sureties & guarantees?

If your company needs to provide security for attractive mandates, sureties from Euler Hermes are the ideal solution. Owing to Euler Hermes’ good reputation and excellent ratings, they are readily accepted by private, commercial and public-sector clients around the world. And they do not negatively impact the line of credit from your main bank.

Provide your international suppliers with valuable reinsurance and ensure that they deliver as agreed. A surety issued on your behalf lets your suppliers know that you are able to meet your contractual obligations, provided they fulfil their own. If you take advantage of our surety services, we assume your liabilities to third parties as an independent guarantor.

As part of a global insurance company, we are accepted as an equivalent to a bank but we meet your needs with greater flexibility. Optimal solution for: Companies with surety requirements from CHF 1 million in the mechanical engineering, manufacturing, import, freight forwarding, wholesale, foreign trade and food industries, among others.

Why opt for a surety or guarantee?

In particular, a surety or guarantee can be an ideal solution for companies that wish to avoid unnecessary and overpriced loans. A surety or guarantee from Euler Hermes gives you the ability to secure the future liquidity of your company without having to fall back on a bank guarantee. Moreover, a surety or guarantee from us grants you considerably more leeway and liquidity than a bank would offer. And who wouldn't prefer not to rely on banks? We work with you to design individualised surety and guarantee agreements that meet your precise needs. Furthermore, your credit line - which you probably have with your main bank - is significantly disburdened by taking out a guarantee from us. This also relieves the financial pressure on you as an entrepreneur and, in turn, on your company. You can instead focus on what’s really important: your business!

How it works

 

  1. Risik analysis: Provide us with the complete information for our review and assessment. Revised annual financial statements and, where applicable, further financial documents will also be required.
  2. Structure of the surety and guarantee: Once we have reviewed and drafted the guarantee text, we serve as a fully independent guarantor for your contract and negotiate the specified and agreed terms and conditions accordingly.
                     

How does hedging with a surety from Euler Hermes work?

Aval Euler Hermes

Sureties and guarantees: insured risks

At Euler Hermes, we review every hedging request on an individual basis. A number of different sureties exist:

  • Bid bonds
  • Sureties for the fulfilment of contracts
  • Deposit and advance payment sureties
  • Sureties for warranty claims
  • Bonds for joint ventures
  • Sureties for renaturation, recultivation, etc.
  • Customs, tax, spirits, freight and market regulation sureties
As you can see, sureties and guarantees are used in many areas. For this reason, our experts would be pleased to work on your individual request with you.

 

What type of bonds does EH offer?

Bid Bonds

  • Variable duration
  • The reliability of an offer in a tendering procedure


Advanced payments bonds

  • 6 months duration
  • The proper use of advance payments for a contractual obligation


Customs, tax and contribution bonds

  • 12 months duration
  • The state against the failure of a delinquent taxpayer

Performance bonds

  • 2 years duration
  • The proper performance of a contractual obligation
     

Maintenance bonds

  • 5 years duration
  • The elimination of deficiencies during a warranty period of a contractual obligation

 


This List of standard bond types is not exhaustive, EH can also provide you with tailored bonding solutions.

Euler Hermes as a partner?
The advantages speak for themselves!

  • You remain independent from banks when procuring sureties.
  • Your line of credit from your main bank is not negatively impacted.
  • The contract is structured in accordance with your individual needs.
  • You have more liquidity and leeway than with bank guarantees.
  • You can release retention money in order to gain additional liquidity or realise interest profits. This allows for increased flexibility and efficiency
  • S&P rating AA

Why obtain sureties from Euler Hermes instead of other insurers?

With some 100 years of expertise in the bond business, Euler Hermes is one of the most experienced providers in the world and is able to issue sureties for foreign clients. Our sureties are readily accepted around the globe. What’s more, Euler Hermes provides many services in the guarantee business that are not offered elsewhere as a matter of course – and it does so at fair, transparent prices. Moreover, the experts at Euler Hermes can advise you in all details of the wording of your sureties.

If your main bank already serves as your guarantor and you are completely satisfied with it, you must be asking why you should switch to a surety from Euler Hermes. This is a legitimate question which we would be pleased to answer for you.

It is important to have a good, trusting relationship with your main bank and under no circumstances should you give this up. Nevertheless, a bank offsets the surety or guarantee against a line of credit, which automatically leads to diminished financial flexibility for you and your company. Euler Hermes does things differently! Here, sureties and guarantees are an insurance policy. In the meantime, your main bank can continue to see to your liquidity.

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