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Pharmaceutical Companies
Environmental Bonds
The Environment Agency “EA” will often require you to provide them with an EA bond as a legal obligation in order for you to be granted or maintain your relevant licences. These licences could be in relation to but not limited to the handling of hazardous materials, the operation of a landfill site or transporting waste into and out of the UK.
Who are they for? Waste & Recycling companies.
Performance Bonds
Performance bonds guarantee that the Bonded Principal will undertake and fulfil their contractual obligations agreed with the Beneficiary. In the event of contractual default (usually via insolvency of the Principal), the Beneficiary will hold security in the form of the bond which will reimburse and pay out losses and damages up to the maximum bond amount.
Who are they for? Main Contractors, Sub-Contractors, Service Providers.
Bid Bonds
This may be a requirement if you are bidding for a local government contract, for example. It represents a commitment, should your bid be successful, that you will carry out the work.
Who are they for? Contractors tendering for public works.
Advance Payment Bonds
Receiving an advance payment from your Employer may allow you to forward order materials with lengthy lead times or commence preliminary services in advance of any main works being undertaken. Advance payments can be crucial for contractor’s cash flows when there are significant costs to get a project started. In exchange for the advance payment, the Employer will likely take security for the payment via an advance payment bond which will usually equal the advance payment sum.
Who are they for? Main Contractors, Sub-Contractors, Manufacturers.
Public Grant
A surety bond for public funding is a guarantee that protects the funding provider (State, Region, etc.) by ensuring that the beneficiary company properly uses the funds or fulfils its contractual obligations, enabling the company to immediately receive an advance on the non-repayable grant. If the company fails to meet its commitments, the institution can enforce the guarantee and recover the funds from the guarantor, who undertakes to reimburse the amount.
VAT Bond
VAT refund guarantee: A VAT refund guarantee is a security that a taxpayer must provide to the Tax Authorities when they have a VAT credit, meaning an amount of VAT to recover that exceeds the amount owed. The guarantee acts as security for the Tax Authorities, covering the risk that the requested refund may not be justified after future audits or inspections, ensuring that any unduly refunded amounts can be recovered by the Tax Authorities.