Surety Bonds, Trade Credit and Credit Insurance

Whether its bonds or Trade Credit, MIR Brokers have the expertise to deliver an effective solutions.  

Commercial Surety Bonds

Surety Bond is a type of protection that is geared for the business communities which require a financial guarantee letter provided by the Insurance Company (Surety) to support the contract parties in case of default by the obligor against the oblige on any present terms. Insurance company will be responsible for penalty payment up to the bond limit; however, Insurer still maintain the recourse right for reimbursement from the obligor. Types of bonds:

  1. Bid Bonds
  2. Performance Bonds
  3. Advance Payment Bonds
  4. Maintenance Bonds

Custom Bonds

Customs Bond is a financial protection instrument that is provided by Surety (Insurance company) for trading companies, i.e. Importer/Exporter (Principal) in order to conduct its obligation in accordance with the deferred tax facilities as facilitated by the Indonesian Custom / KITE (Kemudahan Impor Tujuan Ekspor) and Directorate General of Custom and Tax. Should the Principal who has the primary responsibility to re-export the goods failed to perform its obligation then the surety will step in to settle the outstanding financial obligation (import duty) to the custom office. Right of recourse is existed.

Trade Credit

Trade Credit Insurance protects insured against non-payment by customer due to insolvency, default and other uncertainties.