NEH Guarantees was established in 2016 and obtained its NCR license on 11 October 2017. The company then started operating within the borders of South Africa under the National Credit Act. NEH Guarantees has been operational for 9 years and has assisted various clients with obtaining guarantees for construction projects. Due to the difficulty obtaining guarantees from insurance companies and banks not to mention the high requirements of collateral we have decided to use alternatives to assist our clients in obtaining guarantees, The start of a project is already stressful your guarantees don’t have to be. We submit quarterly and annual reports to the National Credit Regulator and have always passed on our audits under the National Credit Act. Please feel free to contact us on compliance@nehguarantees.co.za to obtain this information on our audits. We also pride ourselves on assisting our clients to the best of our abilities. Our mission is to assist a developing country and developing contractors to become great in difficult economical times like these with our products.
NEH Guarantees is a guarantor registered with National Credit Regulator under license number: NCRCP9726.
The process starts with the completion of the relevant application forms that can be obtained by clicking here (please enter hyperlink). We require the following documents from yourselves:
- Latest Financial Statements
- CK Documents
- Copies of Directors & Shareholders ID
- Proof of residence (FICA)
- 3 months Bank statements (FICA)
- TAX Clearance certificate
- Letter of Appointment (Containing All Tender information)
- Guarantee Wording (for example GCC,JBCC.NEC)
Once all of these documents have been received a Vetting process shall be completed whereby the following will be vetted:
- A Credit check will be done on the relevant consumer confirming that all information supplied is correct
- That the client has no defaults or judgements
- That the client can secure the relevant guarantee issued in favour of the nominated beneficiary(employer)
- Our assessment is based on the company and director’s non-current assets and liabilities.
- We also assess the affordability portion of the company to repay the Guarantor should the contractor default and the contractor becomes indebted to the nominated beneficiary(employer) as its breach has caused a financial loss for the beneficiary of the guarantee.
Once all the vetting is done the Pre-Agreement and quote will be issued containing all the terms and conditions of the facility and also the facility number.
The facility fee (our fee to cover the guarantee amount minus the collateral) is determined by the rate given, the value of the guarantee and the period that the guarantee has to remain in place.
Once the quote has been accepted and Pre-Agreement signed the following documents will be issued:
- Securities (contracts between BFG and Contractors)
- Credit Agreement
Credit agreement will contain the following:
- Contract Value
- Nominated beneficiary
- Guarantee Value
- Deferred amount (Amount that the contractor will be liable to repay on a call up)
- Period for repayment of deferred amount
- Banking details of the relevant company for the return of the collateral portion
Should there be any collateral requirements this will be invested into an account and refunded once the terms of the guarantees have been met, or the guarantee has been returned with a completion certificate.
Collateral can be done by various ways:
- Bank Cession in favour of the guarantor
- Bank guarantee confirming the required collateral amount
- Unencumbered assets ceded to BFG to the value of the guarantee (0% collateral)
- Notarial Bond over assets
