things you must know about Guarantees

• Taking a Guarantees through a bank is like writing a blank cheque. If the principal calls on the guarantee for any reason, a bank will not hesitate to release the same to the principal, knowing the overdraft you secured guarantees them payment. However, with us, all reasonable steps for negotiation & settlement will first be discussed with the principal & yourself to ensure that both parties best interests are upheld.

• The most common way to secure collateral with your bank will be to use an overdraft, costing you interest. With us, collateral of usually only 1% of the contract value will secure the guarantee.  This is kept in a savings account earning your interest.  Once the guarantee is returned, the collateral with the interest earned to loosened up for you.  Instead of costing you interest, your guarantees can actually earn you interest.

• The fees for attorneys charged through Barrington are usually about R3,000 compared with up to R12,000 charged by major banks.

• Where banks require 100% collateral of your guarantee amount, we only require 10%, releasing 90% or more of your securities for your all important cash flow during the project.

• Because your first guarantee through Barrington is underwritten with rigorous information and analysis, your future guarantees will be secured much quicker and the percentage collateral and premiums usually decline over time.

GET A QUOTATION:

 Click here to send us an e-mail requesting a quote -> insurance@barrington.co.za 

We will e-mail you a quotation as soon as possible.

Contact details will be kept confidential & will not be used in any other way other than described above & will not be shared with any other parties.

Please note that we can only insure in South Africa