The ONE Fuel Guarantee is designed for the fuel industry as a unique and accepted alternative to the traditional bank guarantees. The Fuel Guarantee Policy is targeted at all fuel retail service station brands.
Key Benefits
- New retailers don’t have to finance, or tie up valuable security or working capital in providing bank guarantees
- Existing retailers can substitute their bank guarantees and inject some liquidity into their business or reduce liabilities
- Existing retailers on ‘hard cash’ can now afford a guarantee to trade on ACB/manumatic debit
- Existing retailers can ‘top up’ their existing guarantees to meet current fuel company requirements
- The monthly premium is an operating expense of the business and thus written off against taxable income
- Opportunity cost of having your cash or securities released
Additional Benefits
- Fuel Retailer’s Bank Guarantee solution with selected banks whereby the fuel company is issued with a bank guarantee however the bank is secured by the Mutual & Federal Risk Financing Limited guarantee instead of traditional collateral assets (cash security or fixed property)
This Bank Guarantee Solution is available for all fuel brands and is a great solution to release the cash or assets tied up in a bank guarantee without the need to replace the actual bank guarantee held by the fuel company. It is in essence a ‘security swap’ giving the Retailer access to valuable working capital.