In today's business world, construction companies face multiple challenges. The ability to participate in tenders and undertake large projects is crucial for their development and survival.
Construction companies must tie up large amounts of capital to issue guarantee letters needed for tender participation or project execution.
SoEasy Insurance redefines the market with innovative surety bond insurance policies. These solutions create new business opportunities. With a wide range of guarantee letters, the company turns business goals into realities, helping companies of all sizes claim their place in the market.
What is Bond Insurance?
Surety Bond Insurance constitutes an alternative solution to the traditional “Letters of Guarantee” that companies participating in public projects have typically secured from banks.
The Surety Bond Insurance sector, a global market projected to exceed $20 billion by 2025, highlights the importance of releasing working capital for businesses, a need SoEasy Insurance addresses by recently offering “Letters of Guarantee” without capital commitment through its partnership with the French Insurance Company AXERIA.
How do these innovative solutions change the way businesses approach tenders and capital management in practice?
The Power of Liquidity in Business Development
Every entrepreneur knows liquidity is the lifeblood of business. When large amounts are tied up for issuing “Letters of Guarantee” through traditional banking, a company loses the ability to use this capital for other investments or operational needs.
SoEasy Insurance's surety bond insurance enables companies to participate in tenders without impacting their cash flow.
This approach is not just about financial strength. It offers a real strategic advantage. Businesses can participate in more tenders simultaneously, compete for larger projects, and seize opportunities that were previously out of reach due to capital limitations.
This creates a positive development cycle. Increased activity leads to greater revenues, which can mean higher profitability and further expansion.
A Wide Range of Guarantee Letters
SoEasy Insurance understands that every business has unique needs and challenges. That's why the company offers an extensive range of guarantee letters that cover every possible scenario. From participation guarantees, which constitute the first step in entering a tender, to performance guarantees that ensure project completion, each type of guarantee is designed with specific market requirements in mind.
Then follow the advance payment guarantees and payment guarantees that are typically required for public projects. Additionally, the company offers maintenance and operation guarantees for projects that require this specific assurance even after project delivery, creating a comprehensive shield of trust.
Special emphasis goes to specialized guarantees, including those for customs, industrial emissions licenses, and the Energy Regulatory Authority. These solutions demonstrate the company's in-depth understanding of modern business needs and its commitment to providing comprehensive services.
Partnerships that Inspire Trust
Reliability in “Letters of Guarantee” is not only important, but essential. SoEasy Insurance is aware of this and has established strategic partnerships with major international insurance organizations. Its partnership with Axeria IARD, a member of the Arch Insurance group with an A- rating from AM Best, means every guarantee letter issued is valid and reliable.
This partnership is not merely a strategic choice but reflects SoEasy Insurance's unwavering commitment to providing its clients with world-class services.
Cost and Prerequisites
A Letter of Guarantee from an Insurance Company costs slightly more than a bank guarantee, but is affordable for companies. The real benefit is releasing capital. When a business does not tie up capital for guarantee letters, it can use that money for investments, increasing inventory, or joining more tenders.
For SoEasy Insurance to continue offering this product, it must adhere to a strict control framework. Each company must meet specific prerequisites.
The company seeking a Guarantee must have at least three years of activity and audited financial statements for the preceding two years. Companies should be profitable with positive equity. Key personnel experience, sufficient machinery and equipment, and a record of similar projects are examined. The ongoing goal is to offer solutions that add value to businesses and partners.
Companies needing guarantee letters can visit the firm's website or contact a SoEasy Insurance specialist or an intermediary from the network for more information.
