Additional Services
As part of our on-going commitment to value-add, How Strategy Group is delighted to offer a wide range of additional services specifically designed to meet the needs of our clients.
Bank Guarantees
A Bank Guarantee is an alternative to providing a cash deposit or bond directly to a supplier or vendor. It is an unconditional undertaking given by the bank, on behalf of the customer, to pay the recipient of the guarantee the amount of the guarantee on written demand.
Bank Guarantees require security in the form of cash held on deposit with the bank, or real estate of a type and value acceptable to the bank.
The benefits of using a Bank Guarantee are:
- You can meet your contractual obligations to a supplier or vendor, whilst having the comfort of your cash being held on deposit in your name with the bank.
- Deposit funds held as security for a Bank Guarantee attract interest (belonging to you) on the full amount of the deposit.
- A Bank Guarantee can have an expiry date after which the guarantee automatically ceases. Alternatively, it can be open-ended, providing maximum flexibility where completion dates are not certain.
An Establishment Fee is payable on set up and an ongoing Service Fee may also be payable at regular intervals throughout the duration of the Bank Guarantee.
Deposit Bonds
A Deposit Bond acts as a substitute for the cash deposit required by the purchaser between signing a contract of sale and settlement on a property. It acts as a guarantee of the deposit payment. At settlement the purchaser simply pays the full purchase price including the deposit.
Deposit Bonds are widely accepted and trusted throughout Australia as a means of securing a property purchase and can be issued for all or part of the deposit amount required, up to 10% of the purchase price.
There are two types of Deposit Guarantees available based on the settlement term:
- Short Term – for settlement terms up to 6 months
- Long Term – for settlement terms between 6 and 48 months
The benefits of using a Deposit Bond are:
- They are a quick and easy alternative to a cash deposit that is payable when signing a contract to purchase property.
- The application process is fast with instant online approval
- They are a low cost alternative compared to other options such as overdrafts, bridging finance or breaking a fixed term investment.
- They are useful if you have cash tied up in other investments. For example, if you are still waiting for the settlement on a property that is being sold, or you have a fixed term deposit account that you'd rather hold onto until settlement, rather than using your cash for the deposit, you can use a Deposit Bond as an alternative.
- First homebuyers may not be able to provide the deposit upfront until they receive their government grant or gift from family, which is often not accessible until settlement.
A fee is paid when the Deposit Bond is issued and is calculated on the deposit bond amount and the term of guarantee required.
A refund of the fee (less an administration fee) may be payable where the original unused guarantee certificate is returned within 30 days of the date of issue.
Car Finance
How – Strategy Group has access to a large range of car finance products from Australia's leading Bank & Non-Bank lenders.
We are also able to give you an accurate valuation of your vehicle, using our access to Glass’s Guide.
Small Development / Commercial Finance
How – Strategy Group can assist you with small development finance or assist your business to manage its cash flow. Grow your investment opportunities by discussing your needs with our loans property and finance specialists.
Equipment Finance
How – Strategy Group can assist your business to purchase or upgrade equipment. Grow your business by discussing your business needs with our loans and finance specialists.