eGuarantee’s lease bond solution provides the same level of security as a bank guarantee while taking away the inherent risks of the paper-based guarantee.

eGuarantee’s lease bond solution is issued by Assetinsure – Australia’s largest provider of surety bonds – as agent on behalf of the underwriter, HDI Global Specialty SE, a S&P A+ rated insurer.

Though the Australian banks have historically been considered the safest option for lease security, this is often not the experience for those who actually need to claim on the guarantee. Since they are paper-based, bank guarantees can easily be lost or defrauded, and attempts to replace and then claim or cancel them can be a laborious process that takes many weeks or months.

eGuarantee is arguably a more secure solution.

As a digital product, eGuarantee reduces human error with all documents stored and easily accessible online.

The value of the eGuarantee lease bond solution can also automatically increase in line with annual rent reviews, something bank guarantees cannot do, providing a greater level of security.

Tenants pay an annual fee for a lease bond. For bonds below $200k, the fee is 5.5% p.a. Above $200k, the rate drops, and is determined by the financial assessment conducted by our financial services partner (Assetinsure) and is comparable to bank guarantee rates.

An establishment fee also applies and, in some cases, legal fees may be incurred, depending on the organisational structure and requirements.

All fees and charges are debited via Direct Debit. You will receive the full payment schedule ahead of issuance, so will be aware when annual payments are due to be taken.

A lease bond is a non-collateral alternative to a bank guarantee for commercial lease security.

Unlike the banks where collateral is required to obtain a bank guarantee, lease bonds are issued based off an operational and financial assessment.

Tenants access this security through a small annual fee, without the need to tie up a large amount of working capital in a bank account. Tenants are required to sign an indemnity, which is a legal contract.

In the event of a claim, the lease bond is paid unconditionally to the landlord and must be re-paid by the tenant.   

The minimum lease bond amount we can assess is $20,000, up to several million dollars.

Yes, absolutely – subject to landlord’s approval.

Tenants can switch to eGuarantee at any time, even mid-term if they are already locked into a lease.

This will enable the tenants to free up cash collateral or banking lines.

A financial assessment forms part of the application process. Generally, businesses need to:

• Have been trading for 12+ months
• Provide company financials
• No ATO arrangements or payment plans

Other credit criteria may apply.