LeaseBonds are used to secure a commercial lease agreement and are worded identically to a bank guarantee. That is they are unconditional, irrevocable and payable on demand undertakings, and carry exactly the same obligations at law as a bank guarantee.
Typically, when entering a commercial lease with a landlord, the tenant is required to provide the land lord some form of surety equivalent to approximately 3 to 6 months rent in the event the tenant defaults on the lease or fails to make good the premises at the expiry of the lease. It serves as security for the tenant’s full and complete performance of the terms of its commercial lease and the tenant has the choice of providing a form of surety via an Assetinsure LeaseBond, security deposit or a bank guarantee.
General Criteria to Obtain Leasebonds
✓ Business to be operating for a minimum of 3 years
✓ Two full years continuous profitability
✓ Positive Cash flows
✓ Strong Working Capital ratio
✓ Low Gearing position
✓ Strong retained earnings position
Our LeaseBonds are distributed exclusively through our partner eGuarantee. To access their website for product details including application instructions, simply click the button provided below.