A quote takes between 24 – 48 hours to finalise, subject to all information being received.

The premium rate you’ll encounter depends on the strength of your financial statements. Premium rates range from 1% to 3.5%, excluding value-added tax (VAT), and are paid upfront on a pro-rata basis per annum. The minimum invoice period is set at 6 months.

To provide an illustrative example, consider a hypothetical scenario. Suppose you’ve secured a project valued at R5,000,000, necessitating a 10% performance guarantee of R500,000 for an 11-month duration. Assuming you qualify for a 2% premium rate, the cost would amount to R9,166.63, payable upfront as a one-time fee. Please note that this example is for demonstration purposes only.

The collateral requirement is determined based on the strength of your financial statements. Collateral may range from 0% to 10% of the guarantee value, with the industry average typically set at 10%. In the event of a successful cancellation of the guarantee, your collateral will be refunded, along with any accrued interest.

Legendary Risk Solutions (Pty) Ltd has specific expertise in raising insurance-backed guarantees from leading insurers. The insurers with whom we deal are reputable and accredited with all employers in South Africa including all municipalities, ESKOM Ltd, Transnet SOC Ltd and blue-chip listed entities.

The process typically involves finalizing a quotation, which usually takes 24 to 48 hours, provided that all necessary information is received, and all required documentation is complete. Once these requirements are met, the facility can be established within four to seven working days.

Once the facility is established, a guarantee can be issued within 24 to 48 hours. This facility allows you to request and receive multiple guarantees, up to a specified facility limit.

It’s important to note that during the setup of your guarantee facility, we can also issue a letter of intent and draft guarantee, provided we have received sufficient documentation.