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Protecting Liquidity
Expanding Guarantee Capacity
Expanding Guarantee Capacity
Surety Bonds & Guarantees
SURETY
Surety bonds have become an increasingly important alternative to traditional bank guarantees for companies operating in construction, engineering, manufacturing, trade and international project business.
By using insurance-backed guarantees, companies can preserve valuable banking facilities, increase available guarantee capacity and support growth without placing additional pressure on existing credit lines.
Today, CFOs and Treasury teams increasingly use surety solutions as part of their liquidity, working capital and risk management strategy.
By using insurance-backed guarantees, companies can preserve valuable banking facilities, increase available guarantee capacity and support growth without placing additional pressure on existing credit lines.
Today, CFOs and Treasury teams increasingly use surety solutions as part of their liquidity, working capital and risk management strategy.
Group Head of Surety
Email
E-mail
kai.stoetzel@malakut.com
LinkedIn
Kai Stöetzel
Group Head of Surety
Types of Surety Bonds
Performance Bonds
Guarantees that contractual obligations will be performed in accordance with agreed terms and conditions.
Advance Payment Bonds
Protect advance payments made before goods or services are delivered.
Warranty Bonds
Provide security during the warranty period after project completion or product delivery.
Bid Bonds
Required for participation in tenders and procurement processes.
Customs Bonds
Support import, export and customs-related obligations.
Corporate Guarantees
Structured guarantee solutions for multinational groups and complex financing arrangements.
International Surety Programmes
Cross-border guarantee facilities supporting international projects and multinational operations.
Why CFOs and Treasury Teams Use Surety Solutions
Companies increasingly use surety programmes to:
- Preserve bank credit lines
- Increase guarantee capacity
- Improve liquidity management
- Support business growth
- Diversify sources of guarantees
- Reduce dependency on banking facilities
- Optimise working capital
- Create additional financial flexibility
Surety Market Expertise
The Surety Practice is led by Kai Stötzel, Group Head of Surety.
Based in Frankfurt am Main, Kai advises corporates, contractors and international groups on:
He works with clients across Germany, Europe and international markets to structure guarantee programmes and secure additional surety capacity.
- Surety Bonds
- Bürgschaften
- Kautionsversicherung
- Guarantee Facilities
- Bond Capacity Optimisation
- Liquidity Protection
- Treasury Strategies
- Credit & Surety Markets
He works with clients across Germany, Europe and international markets to structure guarantee programmes and secure additional surety capacity.
Frequently Asked Questions
A surety bond is a guarantee issued by an insurer on behalf of a company in favour of a beneficiary. It provides assurance that contractual or financial obligations will be fulfilled.
Both instruments provide security to a beneficiary. However, a surety bond is issued by an insurer, while a bank guarantee is issued by a bank. Surety bonds can help companies preserve banking facilities and maintain greater liquidity flexibility.
In many cases, yes. Companies increasingly use surety bonds as an alternative or complement to bank guarantees in order to diversify guarantee providers and reduce pressure on existing credit lines.
Performance bonds guarantee that a contractor, supplier or service provider will fulfil contractual obligations in accordance with agreed terms and conditions.
Advance payment bonds protect payments made in advance by ensuring that funds can be recovered if contractual obligations are not fulfilled.
Warranty bonds provide protection during the warranty period after completion of works or delivery of goods.
Surety bonds are widely used in construction, engineering, manufacturing, infrastructure, energy, logistics, telecommunications, real estate development and international trade.
Insurers typically evaluate financial strength, liquidity, profitability, leverage, project experience, management quality and overall risk profile before determining available surety capacity.
Yes. International surety programmes can support cross-border projects and multinational operations, subject to local regulations and market conditions.
Requirements vary by insurer, but commonly include audited financial statements, management accounts, details of existing banking facilities, information on guarantee requirements and an overview of the company's operations.
Depending on complexity, a surety facility can often be arranged within a few weeks, although larger international programmes may require additional underwriting and structuring.
Contact
Contact Kai for a confidential discussion regarding your guarantee requirements.
- Kai StötzelGroup Head of SuretyFor advice on:
- Surety Bonds
- Bürgschaften
- Kautionsversicherung
- International Guarantee Programmes
- Bond Capacity
- Liquidity Optimisation