Participating in tenders for large projects is a common way for businesses—especially in the construction sector—to grow quickly. To do this, a business must prove its reliability and more. One key requirement for tender participation is the ability to provide Guarantee Letters.
Guarantee letters are required to participate in public tenders and to execute contracts or secure commercial obligations. Previously, these letters could only be issued through banks, which had to commit their capital. Now, businesses can also obtain guarantee letters from Insurance Companies.
Guarantee Insurance through an Insurance Company offers robust and competitive benefits that are essential for modern businesses. Across Europe and globally, more companies are now choosing insurance companies to obtain guarantee letters.
Improved liquidity and release of capital
The most significant advantage of Guarantee Insurance is that it boosts the company's liquidity, as issuing a Guarantee Letter does not require the commitment of capital. In contrast, banks tie up the value of the amount they grant for each guarantee letter. This occurs either by tying up cash or by tying up assets, which often reduces the company's available capital and liquidity.
However, with guarantee letters from an insurance company, the business can use the capital that the bank would have tied up. This enables the business to expand its workforce, upgrade equipment, participate in more tenders, train staff, and invest in technology—clearly supporting growth and competitiveness.
Multiple opportunities
With insurance-backed guarantee letters, companies can join multiple tenders simultaneously, without capital limitations. By competing in more tenders, they improve their chances of winning new projects and expanding their business.
Speed of issuance
Obtaining guarantee letters from an insurance company is a quick process that typically takes only a few days. Bank procedures often involve more bureaucracy, which can cause delays for companies entering tenders.
Your insurance company provides tailored solutions.
Insurance companies possess the experience and flexibility to offer customized solutions for various sectors and project types. They offer guarantees for public works, customs, the energy sector, and the environmental sector. These products are designed to meet the specific requirements of each sector.
This specialization provides businesses with clearer insights into their risks, enables more precise pricing, and secures more favorable contract terms.
International recognition and reliability
Guarantee letters from recognized international insurance companies provide credibility, reduce transaction risks, and increase trust for businesses operating globally or involved in internationally funded projects.
Obtaining a guarantee letter from an insurance company offers numerous benefits. It boosts a business's growth, liquidity, and opportunities without limits on time or finances. The insurance company becomes a strong ally, helping a business thrive, invest, and stay protected. This support helps a company build strength with reliable partners for its business journey.
Partnerships with giants
Reliability in guarantee letters isn't just important—it’s essential. SoEasy Insurance has formed partnerships with leading international insurance organizations. Its partnership with Axeria IARD, rated A- by A.M. Best and part of the Arch Capital Group (rated A+ by Standard & Poor's), ensures that every guarantee letter bears the seal of validity and reliability.
This partnership shows SoEasy Insurance's commitment to delivering world-class services to clients.
At SoEasy Insurance, we stand by our clients and keep procedures easy and simple. This is our philosophy. You will find partners who will assess your needs and help you succeed in the tenders you choose.
Companies needing guarantee letters can visit our website to learn more. They can contact a member of SoEasy Insurance or an Insurance Intermediary from our Network for help.
