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EFIC’s US Bonding Line facility can provide you, as a small to medium-sized enterprise (SME) exporter, easy access to United States (US) surety bonds in the US market.
The US market typically requires suppliers to post bonds for up to 100% of the contract value for performance obligations, compared with 10–15% elsewhere.
SME exporters may experience difficulty obtaining such sizeable surety bonds because of insufficient tangible security. There may also be the added difficulty of a lack of familiarity for US surety bond issuers with Australian exporters, and between Australian and US financial institutions.
EFIC’s US Bonding Line facility offers you the relative ease of dealing directly through EFIC, which in turn works with Liberty Mutual Surety, to help meet your US bonding requirements and take advantage of the opportunities afforded by the Australia–United States Free Trade Agreement (AUSFTA). Read more > For more information about the AUSFTA visit http://www.fta.gov.au
Benefits at a glance - Provides access to bonds in the US, allowing you to take advantage of the opportunities offered by the Australia–United States Free Trade Agreement
- Minimal security required
- Reduces the complexity of US bonding rules and regulations
- Frees up your working capital
- No US market limitations as surety bonds are available for all US states as well as Puerto Rico and Guam.
| | Liberty Mutual is a leading US surety writer and is part of the Boston-based Liberty Mutual Group Inc. Underwriting on the strength of the Liberty Mutual Group’s superior credit ratings and financial stability (highly rated by A.M. Best, Moody’s and Standard & Poor’s), Liberty Mutual Surety is one of the largest surety writers in the United States, backed by more than 90 years of experience.
Product Features Eligibility - A contract for the export of capital goods or services that requires a US bond, with a sufficient level of Australian content
- Your financier is unable to assist you
- For further information see General Eligibility >
Fees - Pricing is based on a number of variables including liability, duration, risk factors and security considerations.
Security - Minimum security may be as low as 5% of the bond value (cash or unconditional payment guarantee) but is dependent upon the bond type and assessment of the risks involved
- EFIC has recourse to company directors and related companies.
Additional feature - Assistance with dispute resolution if difficulties arise.
Eligibility and Application For all applications and enquiries contact us at finance@efic.gov.au or call us on 1800 887 588 between 8.30am - 5.30pm, Monday to Friday (AEST), or if outside Australia on +61 2 9201 2111.
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