Release the capital tied up in council guarantees.
Councils, utilities and state agencies require security before you can subdivide or develop. SmartBonds replaces the cash deposits and bank guarantees you lodge with surety bonds from insurers rated A- or better.
Bonds for the security your approvals require
When a development consent or subdivision certificate needs security, developers usually lodge cash or a bank guarantee. We give you a third option that keeps both free.
Property developers
Residential, land and mixed-use developers who own the land they develop, from established mid-size groups to national names.
Not for builders or contractors.
Cash deposits and bank guarantees
The security lodged with councils, water and power utilities and state agencies for civil works, maintenance and infrastructure.
A surety bond facility
One facility from an A-rated insurer covers every bond across your pipeline, issued on wording the beneficiary already accepts.
How much could you release?
Two numbers. Enter what you have lodged with councils and authorities today, and how much of it is backed by cash.
Illustrative only and not an offer of insurance. Eligibility, the bond fee and any security required are set by the insurer.
Get your actual numbers →Set up once. Issue bonds as each stage needs them.
Assessment
We review your financials, projects and current guarantees with people who have underwritten this class for two decades.
Facility
We secure a facility sized to your pipeline from insurers rated A- or better.
Issue
Each bond is issued on wording the council or authority already accepts, typically within days.
Release
We track every bond on issue and manage its return once the works are signed off.
Council bonds
- Incomplete works
- Maintenance and defects liability
- Asset protection and road damage
- Landscaping and vegetation
Utility bonds
- Water and sewer connections
- Power and electrical works
- Sized to each stage of an estate
State agency bonds
- Transport and road authorities
- Planning and infrastructure agreements
- Bespoke department requirements
Three ways to meet the same condition
Each one satisfies the beneficiary. They differ in what they take from your balance sheet.
| Cash deposit | Bank guarantee | SmartBonds surety bond | |
|---|---|---|---|
| Cash tied up | All of it | Often part or all, as security | None |
| Bank facility used | No | Yes, reduces headroom | No |
| What backs it | Your cash | Cash, property or facility limits | An indemnity from the company and its directors |
| Accepted by councils | Yes | Yes | Yes, on approved wording |
| Annual cost | What that cash would earn | Fee plus the cost of cash held | A fee on the bond amount |
The approvals are already done
Getting a beneficiary to accept surety wording is the slowest part of switching. More than 50 councils, water authorities and government bodies already accept ours, across five states and New Zealand.
- Growth-corridor councils around Sydney, Melbourne and South East Queensland
- Capital-city water authorities, which often hold the largest bonds on a project
- The full list is available to clients
Established developers who own the land they build on
Insurers price on the strength of the business behind the bond. These are the first things they look at.
- Who
- Residential, land and mixed-use developers who are the registered landowner
- Track record
- Two or more years of audited accounts, and profitable
- Balance sheet
- Net tangible assets comfortably above the facility required
- Facility size
- From a few million dollars to $20M and more
- Bond size
- Typically $50,000 to $1M each, larger on request
- Security
- A deed of indemnity from the company and its directors. No cash lodged
Before you switch
Will my council accept a surety bond?
More than 50 councils, utilities and government bodies already accept our wording. Our bonds are unconditional, irrevocable and payable on demand, the same protection a bank guarantee gives them. If a beneficiary has its own wording, we work with it.
How is it different from a bank guarantee?
A bank guarantee usually needs cash or property as security and uses up your facility. A surety bond is backed by a deed of indemnity from your company and its directors instead, so no cash is lodged and your facility stays free.
Who stands behind the bond?
An insurer rated A- or better. SmartBonds arranges your facility and manages every bond on it for its whole life.
What does it cost?
An annual fee on the face value of each bond while it is on issue. The rate depends on your financial strength and the bonds involved. We'll show you how it compares with what your guarantees cost now.
How long does it take?
Setting up a facility takes a few weeks while the insurer reviews your financials. After that, individual bonds are issued in days.
Can we replace guarantees already lodged?
Yes. We can replace existing bank guarantees with bonds and return the cash or headroom tied up in them, provided the beneficiary agrees to the swap.