A+ rated digital bonds, more secure than a bank guarantee,

Landlords: Increase your cover, improve tenant conversion AND faster claims

“Our ability to use eGuarantee was the deciding factor for us committing to this site”

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Imagine trying to claim on a bank guarantee and finding out it’s fraudulent. This happens.

Paper-based bank guarantees are inherently risky, but they are the dominant form of lease security. Why? Because there is no credible alternative.

Until now.

5 reasons why our lease bond solution is better and more secure than a bank guarantee:

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


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.

Do landlords have to pay to use the eGuarantee platform?

No! If you’re a landlord, there’s no cost to use the eGuarantee platform.

Only tenants are charged for the use of an eGuarantee lease bond solution (through an annual premium).

Ready to boost your leasing business with a more effective security solution and build stronger tenant relationships?

Have more questions?