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Improve your landlord and tenant appeal to win more deals, faster

Intermediaries: A+ rated lease bonds provide better commercial lease security to landlords AND improve tenant cash flow
It’s win, win, win
“Our ability to use eGuarantee was the deciding factor for us committing to this site
Proptech Valuation Financial Solutions
With over 50 landlords across Australia and New Zealand already accepting digital lease bonds, they no longer give you a competitive edge, they just level the playing field.

5 reasons why our lease bond solution needs to be as part of your leasing discussions:

eGuarantee’s lease bond is a non-collateral alternative to a bank guarantee for commercial lease security. Instead of tying up working capital in a bank account, tenants pay a small annual fee. In the event of a claim, the lease bond is paid unconditionally, irrevocably and on-demand to the landlord.

Refer a tenant and you could earn thousands of dollars!

Simply refer a tenant through our referral program, and if we provide them a lease bond, we’ll reward you in proportion to the size of the bond!

The ability to use eGuarantee was the deciding factor for these tenants

eGuarantee’s lease bond solution is issued by Assetinsure – Australia’s largest provider of surety bonds – as agent on behalf of the underwriter, HDI Global Specialty SE, a S&P A+ rated insurer.

Lease bonds are the dominant form of lease security in North America and the UK. Why? Because they are faster and easier to set up and manage for both the tenant and landlord. They build stronger tenant relationships by not requiring them to tie up capital and a bank account. And they are as secure as a bank guarantee. Everybody wins (except the banks 😊).

Accepted by over 50 leading Australian & NZ landlords

FAQs

What exactly is a lease bond?

A lease bond is a non-collateral alternative to a bank guarantee for commercial lease security.

Unlike the banks where collateral is required to obtain a bank guarantee, lease bonds are issued based off an operational and financial assessment.

Tenants access this security through a small annual fee, without the need to tie up a large amount of working capital in a bank account. Tenants are required to sign an indemnity, which is a legal contract.

In the event of a claim, the lease bond is paid unconditionally to the landlord and must be re-paid by the tenant.   

The minimum lease bond amount we can assess is $20,000, up to several million dollars.

How does eGuarantee compare to a bank guarantee in terms of security?

eGuarantee’s lease bond solution provides the same level of security as a bank guarantee while taking away the inherent risks of the paper-based guarantee.

eGuarantee’s lease bond solution is issued by Assetinsure – Australia’s largest provider of surety bonds – as agent on behalf of the underwriter, HDI Global Specialty SE, a S&P A+ rated insurer.

Though the Australian banks have historically been considered the safest option for lease security, this is often not the experience for those who actually need to claim on the guarantee.  Since they are paper-based, bank guarantees can easily be lost or defrauded, and attempts to replace and then claim or cancel them can be a laborious process that takes many weeks or months.

eGuarantee is arguably a more secure solution.

As a digital product, eGuarantee reduces human error with all documents stored and easily accessible online.

The value of the eGuarantee lease bond solution can also automatically increase in line with annual rent reviews, something bank guarantees cannot do, providing a greater level of security.

If you do not take any cash collateral, how is the guarantee secured?

Lease bonds are like an unsecured line of credit, with no requirement of cash collateral or any charge over a company’s or shareholder’s assets.

To secure the Lease bond, only corporate indemnities, and in some instances, shareholder guarantees, are required, which is determined by the financial assessment.

A limited indemnity and guarantee is a basic type of security. It means that the financial services partner (Assetinsue) does not hold an ownership right over your tangible assets such as properties or equipment.

Instead, the tenant’s business in the first instance, or if required, the shareholders will guarantee to repay the funds to the financial services partner (Assetinsure).

This is only applicable should the landlord claim and the bond is paid out.  This payment is limited to the amount paid to the landlord.

The shareholder’s guarantee is an extra safety net. In case the tenant’s business might not be able to repay the money paid to the landlord. Again, this repayment is only up to the amount paid to the landlord.

Is eGuarantee accepted by many landlords?

Yes, eGuarantee is already used by many of the biggest names in the commercial property sector and is accepted by over thirty leading landlords, including Dexus and Centuria. Click here to see who we work with.

What are the eligibility criteria for tenants?

A financial assessment forms part of the application process. Generally, businesses need to:

  • Have been trading for 12+ months
  • Provide company financials
  • No ATO arrangements or payment plans

Other credit criteria may apply.

What documents do I need for the application?

For the initial assessment, the following documents are required:

• Latest accountant-prepared annual financial statements, with prior year comparisons and full notes – finalized and signed by management
• Year-to-date management accounts (P&L and Balance Sheet pulled from accounting platform)
• Schedule of banking and non-banking financing facilities (including any overdraft facility, trade advances, business credit card, chattel mortgage)
• Group and shareholding structure
• Draft or signed Head of Agreement / Lease Agreement, if available.

How does the referral program work?

To refer a tenant click here.

If the tenant is successfully issued with a lease bond, we will send you a Visa digital e-card with a value proportionate to the value of the lease issued.

Ready to close more deals faster? Boost your business with a more effective lease security solution and build stronger tenant relationships.