Simply put – Lease Bonds have removed the bank from the bank guarantees. It provides the same sort of financial guarantee – but aligned to our modern day.

• Lease Bonds are 100% digital, therefore no paper-based documentation, no branch visits, no queues.
• It’s backed by an S&P A+ rated global insurance entity – and therefore no cash collateral required.
• Plus it’s specifically design for commercial lease security to work with your lease agreement  – so it’s more secure.

As there is no cash required – in order to be eligible for a Lease Bond – business owners will need to go through a financial assessment and be approved. Pre-approvals occur in 48 hours when we have all application requirements.

Once approved – the Lease Bond is issued to the landlord, as a bank guarantee would, and the business tenant would pay an annual fee for the issuance.

Once approved, tenants pay an annual fee for a Lease Bond. For bonds below $200k in security value, the fee is 5.5% p.a (so for a $200,000 bond, the fee is $11,000 per annum). Above $200k, the rate drops, and is determined at the financial assessment.

A once off establishment fee of $1500 also applies and, in some cases, legal fees may be incurred, depending on the organisational structure and requirements.

You will receive the full payment schedule ahead of issuance, so will be aware when annual payments are due to be taken.

Lease Bond is technically a form of surety bond – in financial world. It’s a very common financial guarantee product in the US, however has not been widely introduced in to Australia and NZ.

Lease Bonds provided by eGuarantee are specifically used to guarantee commercial leases for lease security. It uses the insurance market, in eGuarantee’s case an S&P A+ rated global insurer, to guarantee the landlord (beneficiary) the security amount if  their tenant breaches their lease obligations.

Because it uses insurance markets, it doesn’t require the tenant to put up the cash up front, and tenants pay a small annual fee to have that guarantee issued.

The minimum lease bond amount we currently offer is $20,000.

Yes, absolutely – subject to landlord’s approval.

Tenants can switch to eGuarantee at any time, even mid-term if they are already locked into a lease.

This will enable the tenants to free up cash collateral or banking lines.

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.