Performance Bond

Performance Bond

Trust , Security & Primary Asset Backed Guarantees

As a commodities buyer/seller or an exporter competing for overseas contracts, including simultaneous buy/sell transactions, you'll often be required by a buyer/seller to provide a performance bond. A performance bond gives your buyer/seller assurance that if you don't perform your obligations under the export contract or buy/sell contract, they can call on the bond to reduce their losses.

As a result, the ability to offer a buyer and/or a seller a performance bond, means you can compete more effectively in the global market.

However, the value of a bond that your buyer and/or seller requires may be a significant percentage of the contract value. To issue the bond, your buyer and/or seller may require security for its full amount, tying up too much of your working capital and preventing you from pursuing other opportunities.​​

If you can't provide the full amount of security the buyer and/or seller requires, Pioneer Insurance Group Holdings Company Limited may be able to assist. If you meet our eligibility criteria, we can issue the bond to your buyer and/or seller directly, or in conjunction with your bank.

Our security requirements are based on an individual assessment of your ability to perform the export or buy/sell contract and our credit risk assessment, and the value of the security we require may be less than the amount of the bond. This enables you to meet your export or buy/sell contract requirements without tying up all your working capital.

What are the benefits?
. Enables you to compete more effectively in global markets and can help you secure larger contracts
. Frees up your working capital
. You enter into an export or buy/sell contract with your overseas buyer/seller.
. If your bank can't help you with a performance bond, you apply to Pioneer Insurance Group Holdings Company Limited.
. If Pioneer Insurance approves your application, you provide security to Pioneer Insurance Group Holdings Company Limited.
. Pioneer Insurance Group Holdings Company Limited issues the bond directly to your buyer/seller.
. Alternatively, if your buyer/seller requires your bank to issue the bond, Pioneer Insurance Group Holdings Company Limited issues the bond to your bank, and your bank issues their bond to your buyer/seller.

Trust and Security. Diligence, and Primary Asset Backed Guarantees - these are the three pillars that form the basis of our integrated business model. We provide our Performance Bonds worldwide for every need and complexity, and our experience, financial strength, efficiency and first-class service naturally make us your first choice.

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