What is a Commercial Lease Bond?

A commercial Lease Bond is an agreement with the landlord, tenant and guarantor that is used as an alternative to commercial lease security.  The guarantor holds the total value of the lease security as an ‘IOU’ for the tenant and the tenant pays an annual fee to have it made available.

In the event tenant breaches their lease obligations and landlord needs to make a claim, the guarantor pays any claims made unconditionally and on-demand to the landlord and the guarantor redeems the amount from the tenant.

Lease Bonds allow tenants to release their cash which would have been tied up in the lease security as a “in case” scenario for the landlord, but also allows landlords the security they need to protect their assets.

As the only distributor of Commercial Lease Bonds to the Australian and New Zealand market, eGuarantee’s Lease Bond solution is an award-winning digital financial solution that allows commercial tenants and landlords to enjoy financial, administrative and security benefits with all the protection of a traditional bank guarantee.

eGuarantee’s Lease Bond solution is backed by an S&P AA- rated global entity, HDI Global Speciality SE , and executed via our encrypted technology platform – which brings lease security on par with today’s modern way of working without compromising any of the product.

• Free up your business cash: eGuarantee’s Lease Bond solution forgo hefty upfront cash deposits. Instead, you only have to pay a small annual service fee.
• Boost finances instantly: Switch to eGuarantee mid-lease and reclaim your cash bond or bank guarantee for instant working capital.
• Invest in growth: Transform ‘dead money’ in a bank guarantee, and invest it back into your business operations, upgrades, people or growth.
• Quick approvals: With eGuarantee, tenants can be approved in as little as 1 – 3 business days with zero cash or collateral.
• Enhanced security: As a completely digitised form of lease security held on an encrypted platform, Lease Bonds allows you to avoid the unwanted exposure of outdated paper authentication.
• 24/7 accessible: Being an end-to-end digital solution, eGuarantee’s lease bond solution allows you administer it where ever or when ever your business allows, removing the need for long bank queues, laborious paper work.
• Total transparency:  Process is completely documented in real-time so you can track the process with all the stakeholders involved.
• Enhanced communication: Communicate & manage your lease seamlessly  via an online dashboard.
• Better tenant-landlord relationships: Start smooth tenancy with assured payments via a trusted third-party underwriter.

• Higher tenant satisfaction: Release your tenants business cash back into their business, encourages tenant attraction and tenant retention.
• Enhanced security: Have peace of mind knowing that your lease securities are held on a secure, encrypted platform to avoid, loss, fraud or human error that can happen with paper formats.
• Operational efficiencies: being an end-to-end digital solution, eGuarantee’s Lease Bond solution removes the administrative hassle of keeping track of paper bank guarantees,  retail branch visits and queues. Manage claims and cancellations instantly through a globally accessible online platform.
• Total transparency: with eGuarantee you can digitise your entire bank guarantee portfolio and integrate it with Lease Management software through an open API for real-time viewing of your lease security
• Automated processes: receive advance notice of your lease expiry date, as well as automatic increase of lease bond value in line with rent escalation.
• Guaranteed payment: rest assured that your claim is unconditionally, irrevocable and paid on-demand.
• Streamlined processes:
  • Communicate seamlessly with all parties involved via eGuarantee’s digital platform
  • Increase productivity by permitting platform access for your solicitors and asset managers
  • Share your records and lease agreements with your custodians and trusts
• Streamlined property transfer: save yourself the administrative burden with a customised template of the terms and conditions of your leases, allowing you to effortlessly transfer eGuarantee’s Lease Bond solution electronically when your property is sold or acquired.
• Better tenant-landlord relationships: start your lease agreement on good terms with an eGuarantee lease bond solution that provides financial relief for your tenants, saving them from having to put up precious collateral or provide large upfront cash amounts.

1. Underwritten by the best

All eGuarantee Lease Bonds are administered by Australia’s largest surety underwriter, Credeq Australia (ABN 39 625 083 810), which has an Australian Financial Services Licensee (AFSL 568636) and operates as a Managing General Agent on behalf of international AA- S&P rated insurer HDI Global Specialty SE..

2. Growing industry adoption

Most of Australia’s largest commercial landlords are already onboard, with Dexus, Vicinity, Centuria, Frasers, EG Funds, Aliro and many more business partners already using eGuarantee’s lease bond solution. See who we work with on our Landlord page.

3. Designed to work with Commercial Leases

With bonding facilities available from $20,000 up to $20 million, Lease Bonds are a suitable option for business tenants who don’t want their cash tied up in a bank guarantee and want the flexibility to manage it online, anywhere and any time.

4. Support every step of the way

eGuarantee are commercial lease experts, we provide helpful guidance to complete the application process and customising the product to ensure it works for both tenants and landlords.

5. 100% digitally encrypted and managed

eGuarantee’s AI-powered tech platform makes the administration of commercial lease security a lot simpler – saving you time and money.