Increasingly companies are seeking out opportunity in new markets and foreign territories. While global commerce is becoming a more familiar place, performance requirements are broadly unfamiliar, serving as another custom varying from country to country. Without fluency in local practices, legislation and foreign contracts, understanding exposure can be overwhelming and confusing.
What’s important to know ?
Outside of North America, contract performance requirements may vary from percentage-based surety bonds, for example 50% in South America & 10% in UK, to bank issued Letters of Credit (LOC). LOCs are typically on demand instruments which are 100% secured by liquid asset.
Each contract and client present a unique set of circumstances :
Several key factors to consider
o Local, “in-country” market knowledge
o Project technical scope
o Political risk exposure
o Financial strengths of sureties and international capability
o Contractual language & risk mitigation based on surety principles
o Performance bonds
o Advance payment bonds
o Judicial bonds
o Supply & Install bonds
What we’ve done ?
The Raffuel Surety Group has a combined 90 years in international experience having worked with large scale, multinational contractors out of Europe and Asia to mid-sized, innovative equipment manufacturers in their early endeavors into new markets. With our adept international advisory team, we are able to turn complex circumstances into executable business initiatives.
Our creative, solution driven thinking has led to securing surety programs for individual clients as high as $1 billion.
Whether it’s the need for North American support for your foreign based company, or the need to place bonds outside the U.S for a domestic client, we’re the right choice.
Call us to speak further about your international needs.