Cheapest Bank Guarantee

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  Typical16-bitEnjoyer on 12/08/2020 - 15:43

  Any recommendations or alternate securitisation options?

  You can insist on a cash security, but I doubt they will accept that. There's no guarantee they will get to keep the money. ie. in the unlikely event you become bankrupt.

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    Countryboyperth on 12/08/2020 - 16:26

    Agree. Council does not want cash.

    • 

      netjock on 12/08/2020 - 17:13

      -1

      Take them to get their heads checked.

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  SBOB on 12/08/2020 - 18:56

  I have to provide a bank guarantee to the Shire in WA say $8,000 for a work that I am postponing.
  I am a private citizen without ABN.

  I'm surprised a council/government would award 8k worth of work to someone without an ABN.

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  WetGrout on 12/08/2020 - 19:11

  +2

  When I used to work for the CBA I use to do a lot of BG's. For some reason, a lot of people in the bank avoid them as they think they are complicated.
  They used to charge $250.00 to do the paperwork, so make sure that you have all the details right the first time as they will charge for any spelling mistakes or changes.
  They then used to charge a fee to have the security held in place, which from what I can remember was a percentage of the security amount. I believe that most major institutes have the same or similar fee structure. You could use like you said a TD or even a hold on amount in a savings account.

  One tip I have, is if you do get a BG, try to get one an expiration date. The reason I say that is, if favourees (the people that have requested the BG is the first place) go missing or change jobs, your money will be returned to you as the expiration period. If you get one that has a "nil" expiration date your money will be held as security forever.
  The only way you can get it cancelled if by getting the signatures of the original favourees or get someone in the bank contact risk and get it approved for cancellation. You will need to find a good staff member to help you with this (refer to the my second sentance).
  I remember seeing clients with BGs that were in place since the 90's and they couldn't get it cancelled as the favourees(e.g landlords etc) when missing and they could never get the correct signatures that matched the original paperwork to have it cancelled. People were still getting fees for years on BGs where the businesses no longer existed. I used to love finding these and getting them cancelled, the the client used to get back the money and some of the fees refunded to clients, who thought they would never see the money again.

  My experience is from a few years back, however I hope this still helps a bit.

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    serpserpserp on 12/08/2020 - 21:37

    try to get one an expiration date.

    Don't try. Insist. You are able to put a date in when you do the application for a BG so do it.

    If the BG has no expiry date and gets lost and the favouree doesn't want to play ball you have to get all kinds of stat decs done, it is a major pain for all involved.

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  drprox on 12/08/2020 - 19:35

  ANZ do cashbacked ones pretty simply in small business. Imagine the other banks are the same.
  Probably wouldn't worry about what an $8k BG costs as the bigger challenge may be to get a banker to care enough to do it anyway!