5 Reasons why you should use Galileo Risk Insurance for your Performance Bond / Guarantee
1. Taking a Performance Bond 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 as much as possible.
2. The most common way to secure collateral with your bank will be to use an overdraft, costing you interest. With us, fixed deposits, investment policies or mortgage bonds can all be used for the smaller collateral required, saving you interest charges.
3. The fees for attorney charged through Galileo Risk Insurance range from R1,500 compared with up to R12,000 charged by major banks.
4. Where banks require 100% collateral of your guarantee amount, we only require up to 50%, releasing 50% or more of your securities for your all important cash flow during the project.
5. Because your first performance bond / performance guarantee through Galileo Risk Insurance is underwritten with rigorous information and analysis, your future guarantees will be secured much quicker and the percentage collateral required can decline over time.