Council SmartBonds Backed by QBE Insurance

SmartBonds, in conjunction with listed insurer QBE Insurance (Aust) Limited, has launched a performance bond solution to frustrating cash deposits and bank guarantees in the Council DA process.

Traditional security such as cash deposits and bank guarantees tie up working capital indefinitely. Council SmartBonds do not require any collateral and incur no opportunity cost on working capital.

Council SmartBonds are an unconditional, pay on demand undertaking from QBE Insurance. The bond is open ended (as it does not have an expiry date) and remains at the absolute discretion of the Council for the duration of a development.

Bond facilities from $5,000 upwards are available within minutes online via www.smartbonds.com.au. 

SmartBonds spokesperson Mr John Gardiner says, “Council SmartBonds are a classic win/win scenario. Councils receive the security they require whilst applicants retain their working capital. QBE is APRA licensed and independently rated A+ by Standard & Poors”. 

“Bonds up to $50,000 are processed online in real time. Applicants enter their details, receive the fixed quotation, e-sign the terms and conditions, pay the fee and receive their bond certificate by email within minutes”. 

“Bonds above $50,000 are processed by our underwriters. Applicants enter their details and a SmartBonds representative completes the application process. Facilities are typically finalised within 3 working days”.

“All fees are quoted in advance and are fixed for the life of the bond. Fees are competitive and are typically 2-3% of the bond value per annum”.

“All bonds expire once an occupation certificate or equivalent has been issued”.

“Bonds can be verified online 24/7 by visiting our website and entering the bond number and amount”.

“Meanwhile, Councils can convert a bond to cash at their discretion by notifying QBE, and they will receive the cash by EFT within 5 days”. 

“Council SmartBonds can even replace existing security deposits, meaning developers can recoup their working capital by providing a bond for an equivalent amount”.

Bank guarantees require cash and or property collateral and are difficult to obtain and expensive. Cash deposits are inconvenient; especially when building costs are so high. Council SmartBonds are better because they do not require any collateral. They are faster because they are available online, and smarter because they are popular, embrace technology and are backed by QBE Insurance.

Enquiries are welcome at www.smartbonds.com.au or 1300 247 300.