A commercial lease bond is an alternative financial guarantee to paying a cash security deposit or providing a bank guarantee for a commercial lease. It gives landlords the security they need, while allowing tenants to keep more of their cash available to run and grow their business.
Instead of paying a large amount of money upfront, a guarantor provides the agreed security amount on the tenant’s behalf. The tenant then pays an annual fee for the bond, rather than having their cash tied up for the length of the lease.
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.
The cost of a commercial lease bond is based on an annual service fee rather than a large lump sum. This fee is a small percentage of the total lease security, paid each year for as long as the bond stays in place. The exact amount depends on the size of the security and the length of your lease, so a larger bond or a longer term will cost more over time. There’s no cash deposit or collateral to lodge, which is what sets a lease bond apart from a traditional bank guarantee on cost.
A commercial lease bond creates value on both sides of the lease. Tenants free up the cash they’d otherwise lock into a deposit or bank guarantee and can put it back into their business, while landlords keep the same protection and security with far less to manage. The sections below break down what each party gains.
An eGuarantee lease bond gives business tenants a smarter way to handle lease security, without tying up the cash your business could be using elsewhere. From freeing up capital to quick approvals and round-the-clock access, the benefits add up across the life of your lease. Take a look at what an eGuarantee lease bond offers business tenants below.
eGuarantee’s Lease Bond solution forgo hefty upfront cash deposits. Instead, you only have to pay a small annual service fee.
Switch to eGuarantee mid-lease and reclaim your cash bond or bank guarantee for instant working capital.
Transform ‘dead money’ in a bank guarantee, and invest it back into your business operations, upgrades, people or growth.
With eGuarantee, tenants can be approved in as little as 1 – 3 business days with zero cash or collateral.
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.
Being an end-to-end digital solution, eGuarantee’s lease bond solution allows you to administer it wherever or whenever your business allows, removing the need for long bank queues, laborious paper work.
The process is completely documented in real-time so you can track the process with all the stakeholders involved.
Communicate & manage your lease seamlessly via an online dashboard.
Start smooth tenancy with assured payments via a trusted third-party underwriter.
An eGuarantee lease bond gives landlords the same security as a traditional bank guarantee, with far less to manage. From happier tenants to instant claims and full visibility of your lease securities, there’s a lot to gain when you make the switch. Take a look at what an eGuarantee lease bond offers landlords:
Release your tenants’ business cash back into their business, encourages tenant attraction, and tenant retention.
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.
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.
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
Receive advance notice of your lease expiry date, as well as automatic increase of lease bond value in line with rent escalation.
Rest assured that your claim is unconditionally, irrevocable and paid on-demand.
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.
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.
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..
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.
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.
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.
eGuarantee’s AI-powered tech platform makes the administration of commercial lease security a lot simpler – saving you time and money.
Stop locking away capital in traditional bank guarantees. The average eGuarantee customer unlocks $375,000 in working capital, money that can be reinvested into growth, staff, fit-outs or operations. A commercial lease bond hands that cash back without giving up any protection.
A commercial lease bond from eGuarantee delivers the same unconditional protection as a traditional bank guarantee. Our bonds are underwritten by an S&P AA- rated global insurer, so claims are paid on demand. You keep every safeguard, with none of the paper or branch queues.