Your one-stop solution for lease bonds in New Zealand!
We are proud to partner with eGuarantee, a leading provider of secure online bond guarantees from Australia, to offer you a seamless and hassle-free experience. Whether you are a tenant or a landlord, our services are designed to benefit both parties and simplify the leasing process.
What is a Lease Bond?
eGuarantee is a well-established and trusted platform that offers a digital alternative to traditional cash deposit bonds or bank guarantees for the industrial and commercial sectors. Instead of paying a cash bond upfront or having to procure a bank guarantee, tenants can provide a surety lease bond which serves as a secure guarantee of their obligations under the lease agreement. As with a bank guarantee, the bond is payable on demand. However, the tenant does not have post collateral or cash, instead they provide the bond issuer with an uncollateralised counter indemnity. This product has been widely used in Australia for many years, freeing capital and bank lines for many businesses, and Vega is pleased to lead its distribution into the New Zealand industrial and commercial markets.
This electronic bond is processed quickly and efficiently, reducing paperwork and administrative overhead for both tenants and landlords.
The lease bond is issued by Assetinsure and underwritten by a syndicate of internationally recognised insurers with an A-/AA credit rating, effectively the same credit rating as the NZ banks.
Who is eligible?
Small, medium, and large-scale enterprises with at least 2 years profitable trading experience looking to secure long-term leases, and their landlords.
Minimum bond size/annualised rental is $50,000 and covers the term of the lease.
There is a simple credit process for tenants which Vega will undertake on your behalf.
Benefits for Tenants:
Affordability: Tenants no longer need to tie up a significant amount of money in a cash bond or use bank lines to procure a bank guarantee. Instead, there is an annual fee for the bond, typically 3-5.5% of the bond value.
Convenience: The process is entirely online, making it convenient and accessible from anywhere at any time. No more hassles with the bank visits or handling physical paperwork.
Fast Approval: The eGuarantee system processes applications swiftly, enabling you to secure your selected property quickly and efficiently, leaving you free to focus on your business.
Download Tenants Benefits Brochure and Case Studies and FAQs Guide
Benefits for Landlords:
Reduced Risk: eGuarantees offer the same level of security as traditional cash bonds and bank guarantees, ensuring landlords are protected against potential breaches of the lease agreement.
Streamlined Process: Managing bond guarantees online simplifies the administrative burden for landlords, saving time and effort.
Increased Demand: By accepting eGuarantees, landlords appeal to a broader pool of tech-savvy tenants who appreciate the convenience of digital processes.
Download Landlord Benefits Brochure and Case Studies and FAQs Guide
We look forward to serving you and making the rental process smoother for everyone involved!
Cost of eGuarantee:
eGuarantee charges a competitive and transparent fee for the bond, typically 3-5.5% of the bond value. The exact cost will vary depending on the rental property's monthly rent and the credit a risk of the tenant. Vega’s fee for arranging the bond is paid by eGuarantee.
Contact Vega for Further Information:
For more details about our lease bond services and lease bonds, please don't hesitate to get in touch with our friendly team. We are here to assist you with any queries or concerns you may have. Contact us via:
- Contact: Kevin Miles, Commercial Finance Specialist
- Phone: 029 202 2102
- Email: [email protected]
- Office Address: 152 Fanshawe Street, Auckland CBD, Auckland
Let Vega and eGuarantee take the stress out of arranging security for your rental commitments, so you can focus on finding the perfect premises and using your capital effectively in your business.