Surety Bonds
A modern, cash-friendly alternative to bank letters of guarantee. From public tenders to customs procedures, we deliver expert solutions for all your guarantee needs.
- No cash block at the bank
- Does not use your credit line
- Fast, expert process
What exactly is surety insurance?
Surety insurance (kefalet) is a type of insurance that guarantees an obligation will be fulfilled per the contract terms. The insurer (surety) provides a guarantee to the beneficiary (creditor) on behalf of the debtor. If the obligation is not met, the beneficiary may claim compensation from the insurer.
With a 2016 amendment to Turkey's Public Procurement Law, surety bonds became accepted as bid and performance guarantees in public tenders — making them a strong, cash-friendly alternative to bank letters of guarantee.
Kefalet ilişkisinin tarafları
Borçlu (Aslî Borçlu)
Yükümlülüğü olan taraf — siz
Lehtar (Alacaklı)
Teminatı talep eden kurum/kişi
Kefil (Sigortacı)
Teminatı sağlayan sigorta şirketi
Surety bond or bank letter of guarantee?
The key differences between the two instruments at a glance:
| Feature | Surety Bond | Letter of Guarantee |
|---|---|---|
| Cash block | Usually not required | Often required |
| Credit line usage | Does not use it | Uses the bank credit line |
| Cost structure | Premium-based, competitive | Commission + taxes |
| Process | Fast, insurer assessment | Bank underwriting process |
| Validity in public tenders | Accepted (since 2016) | Accepted |
| Balance-sheet impact | No non-cash credit risk | May appear as non-cash credit |
The surety solutions we offer
We determine the right guarantee type for your needs together.
Bid Bond (Tender)
A surety bond replacing the provisional guarantee submitted when bidding for a tender.
Performance Bond
Guarantees the work will be completed in line with the contract.
Advance Payment Bond
Secures the repayment of the advance paid by the employer.
Customs Bond
Guarantees required for customs duties and procedures.
Court & Enforcement Bond
Surety for guarantees required in judicial and enforcement proceedings.
Maintenance Bond
Guarantee for the warranty and maintenance period after delivery.
Why a surety bond?
Your cash flow is protected
Provide a guarantee without blocking capital and keep operating uninterrupted.
Your credit line stays free
Use your bank limits for your core investment and operating needs.
Competitive, predictable cost
Premium-based structure means costs are known in advance.
Fast, expert process
We build the right structure and manage the whole process from application to bond.
A surety bond in 4 steps
Needs analysis
We determine the bond type, amount and term together.
Assessment
Financial and business details are assessed by the insurer.
Offer & approval
We present the best offer and manage the approval process.
Bond issuance
The surety bond is issued and provided to the beneficiary.
Common questions about surety bonds
Yes. With the 2016 Public Procurement Law amendment, surety bonds are accepted as bid and performance guarantees in public tenders, and can be used in many private-sector transactions too.
Let's solve your surety needs together
Get free advisory and a quote for your surety bond. Our expert team will build the right guarantee for you.