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

The premium rate you’ll be charged depends on the strength of your financial statements. Premium rates typically 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, let’s consider a hypothetical scenario. Suppose you’ve secured a project worth R5,000,000, which requires a 10% performance guarantee of R500,000 for a duration of 11 months. Assuming you qualify for a 2% premium rate, the total cost for this guarantee would amount to R500,000 * 2% / 12 * 11 = 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.

Banks normally take 100% collateral and still charge fees to have a guarantee facility in place. Our insurers offer lower collateral requirements and you pay only for the guarantees you require. There are no annual fees for having a facility in place via Blenheim.

A guarantee facility separate from the bank will enable your company to grow since your financing can be handled by the bank and we do your guarantees.

Advance Payments are normally between 15 and 20% of the contract amount. There are only a few insurers in South Africa willing to issue a stand-alone Advance Payment Guarantee without a performance / construction guarantee being in place prior to the issuing of an Advance Payment Guarantee. At Legendary Risk Solutions we have the expertise, experience and the relevant insurers on our panel to assist you.