European Surety Bond Specialists
Why choose a surety bond with Sammy Free?
Specialists
We know every detail — we’re your best ally.
Agility 72h
Immediate response. We arrange your guarantee when you really need it.
European Reach
We operate in 30 countries. One broker for all your markets.
Long term 5+ years
We review surety bond policies with terms longer than 5 years.
What is a
Surety Bond?
A surety bond is a guarantee issued by an insurance company, linked to the performance of a contract or regulatory obligation.
If the obligations set out in the contract are not met, the insurer will compensate the beneficiary named in the contract.
This is why a surety bond is said to secure a contract — and why it is the alternative to a bank guarantee.
Which sectors use Surety Bonds?
Surety bonds are multi-sector instruments that can be used across all industries. Whenever a guarantee is required to secure the performance of a contract, a surety bond can be used.
Public authorities accept them in the same way as bank guarantees, while in the private sector they are accepted by mutual agreement between the contracting parties.
Below are the most common sectors we work with:
Administrative Concessions
Guarantees for the management of long-term administrative concessions of public services.
Renewable Energy
Grid connection bonds and decommissioning guarantees for any renewable energy installation.
Mining
Environmental restoration, waste, exploitation and concession guarantees for mining operations.
Environment
Environmental restoration guarantees required by law.
Construction & Real Estate
Buyer deposit guarantees and decennial insurance.
Private Security
Guarantees required by national competent authorities without affecting banking exposure.
Customs & Import/Export
Guarantees on payment of tariffs and VAT before the Customs and Special Taxes Department.
Gambling
Administrative bonds for gaming licences.
| AVAL BANCARIO | SEGURO DE CAUCIÓN | |
|---|---|---|
| TESORERÍA | Pignora recursos | No bloquea dinero |
| RIESGO BANCARIO / CIRBE | Sí computa en CIRBE | No computa en CIRBE |
| VELOCIDAD | Depende del banco | 48 / 72 horas |
| LICITAR EN EUROPA | Limitada | Directa en 30 países |
| CAPACIDAD PARA LICITAR | Según riesgo bancario (CIRBE) | Permite participar en más licitaciones |
| VINCULACIÓN | Puede exigir servicios adicionales | No se exige vinculación a otros servicios |
| BANK GUARANTEE | SURETY BOND | |
|---|---|---|
| LIQUIDITY | Ties up funds | Does not block funds |
| BANKING RISK | Yes, reported to credit risk register | No, does not count in credit risk register |
| SPEED | Depends on the bank | 48 / 72 hours |
| TENDERING IN EUROPE | Limited | Across 30 European countries |
| TENDERING CAPACITY | Based on banking risk | Allows participation in more tenders |
| TIES | May require additional services | No ties to other services required |
Sammy Free,
A Trusted Partner
Sammy Free, your broker for growth in Europe.
30 countries.
One broker.
When you grow in Europe, choosing the right partner makes all the difference.
Is your company operating or looking to expand across Europe? We help you obtain guarantees through surety bonds in any of the 30 countries of the European Economic Area, with a single point of contact that saves you time and simplifies the process.
We have already supported companies from various countries in their operations in Portugal, Italy, Poland, Romania, Germany and Spain. Here are some of our success stories:
Want to grow by participating in European public tenders? Use our free search engine and access all calls in one place, with filters by sector, country, amount, date or contract type.
Plafond, your pre-approved guarantee line
Do you bid on tenders regularly?
Activate your guarantee line
Forget negotiating guarantees one by one. We assess your company once a year and assign you a risk capacity limit. This means your guarantee certificates can be issued within hours, without repetitive paperwork.
What documentation is required to apply for a surety bond?
The documentation required varies depending on the insurer and the type of operation, but generally includes information on the company’s financial, fiscal and legal situation, together with documentation related to the contract or tender (specifications, award notice, etc.).
How Much Does a Surety Bond Cost?
The cost of a surety bond depends on several factors that determine the level of risk involved:
- The company’s financial strength
- The type of bond required (bid bond, performance bond, advance payment bond, etc.)
- The amount and duration of the bond
- The company’s track record
- The country where the bond will be issued
- The company’s technical and operational capacity
- Market conditions
If you would like to learn more, read our article on the factors that influence surety bond pricing.
Can a surety bond replace a bank guarantee?
Yes. Both surety bonds and bank guarantees are valid instruments for securing a contract, and either can be used.
The key difference lies in the financial impact on your business:
- Bank guarantee: uses part of your banking capacity and ties up liquidity or assets as collateral.
- Surety bond: does not affect your banking capacity and does not tie up capital.
Discover all the advantages of surety bonds compared with traditional bank guarantees.
How long does it take to issue a surety bond?
It depends on whether you already have a Plafond (pre-approved bonding facility) in place with the insurer or not:
- With a Plafond line: issuance is same-day, as the company has already been assessed and approved.
- Without a Plafond line: the required documentation must be submitted (financial statements, legal documentation, tender documents, etc.). Once received, you will normally receive a quotation within 48 hours.
Do you also arrange guarantees between private companies?
Yes. Surety bonds can be used both in contracts required by public authorities and in agreements between private companies.
- With public authorities: they are required by law to accept a surety bond as a valid form of guarantee, unless the tender documents state otherwise.
- Between private companies: both parties must agree on the type of guarantee accepted. Both a surety bond and a bank guarantee are acceptable where there is mutual agreement.
What types of guarantees do you arrange?
We arrange all types of surety bonds. The most common are:
- Bid Bond: to participate in public tenders and procurement processes.
- Performance Bond: to guarantee performance of the contract once awarded.
- Advance Payment Bond: when a company receives an advance payment and must guarantee its repayment if contractual obligations are not met.
- Maintenance Bond: provides cover during a defined period after completion, ensuring that the works have been carried out correctly and covering potential defects in materials, workmanship or design that may arise at a later stage.
- Retention Bond: replaces amounts retained by the contracting authority until completion of the contract. It avoids the retention of funds from certified interim payments due to potential defects.
If your situation does not fit exactly into any of these categories, contact us with no obligation and we will find the most suitable solution for you.
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