Thursday, July 9, 2015

Family Bank Bid Bonds

Tender or Bid bonds are undertakings given by a bank in support of a contractor/supplier bidding for work contract. They are normally submitted with other documents asked for in the invitation to tender and remain valid during the period of tender, plus a grace period to allow the beneficiary to make demand. The aim of the tender bonds is to provide the beneficiary with a financial remedy if the applicant fails to fulfill any of the tender conditions.
Family Bank Bid Bonds(Image credit:Family Bank)


Key Elements of the Bid Bonds

  • They are used during the bidding stage
  • They are usually between 2% to 5% the value of the bid
  • They are used to alleviate the cost of non-performance during the contract award period stage
  • The duration of the tender normally lasts between 30 to 150 days

Special Features of Family Bank Tender/Bid Bonds

  • They are unsecured up to Ksh. 3 Million
  • They can be issued within 1 hour after receipt of complete application
  • They can be used at any of the Family bank branches in the country
  • The rates at Family bank are both affordable and competitive

Application Requirements

The application is guaranteed by the following details
  • Applicant's name
  • Beneficiary name
  • Amount 
  • Duration of the bid bond
  • Purpose of the Bid bond
A copy of the tender dopcument showing the above details(if available)
Tender/Bid Bond format

Other Types of Guarantees offered by Family Bank include;

  •  Performance Bond on flexible terms including 50% cash cover
  • Advance payment guarantee
  • Payment guarantee
  • Facility Guarantee (to secure a credit line)
  • Government Bonds; Custom Bonds, Transit Bonds, Immigration/security Bonds etc

Family bank also has the capacity and expertise to issue other forms of guarantees not mentioned above

Other Trade Finance Products Aavailable at Family Bank includes;

  • Letters of Credit
  • Collections
  • Invoice discounting
  • LPO finance
  • Post Import Finance
  • Structured Trade Finance

Information courtesy of Family Bank





Jumia anniversary deals

2 comments:

  1. View all tenders in Kenya from http://tendersoko.com, and get you bid bonds directly from TS Capital.

    ReplyDelete
  2. When you begin to look into investing in bonds you will quickly come across the term, bond ratings. In order to help investor determine what the most suitable bond to invest in is, there has been a series of ratings developed by a few reputable industry companies.guarantor loans

    ReplyDelete