The problem
PSU and defence supply orders often run on thin margins with strict delivery timelines. A bank guarantee's cash collateral eats into the working capital needed for raw materials and production runs.
Manufacturing
Scale manufacturing contracts without locking up plant capital
From PSU supply orders to defence production contracts, keep working capital on the shop floor - not in a bank margin.
₹29,000 Cr+
Estimated value of surety bonds issued in India
100+
Central Government procuring entities governed by GFR
10–20%
Typical surety margin vs bank guarantee
5–7 days
First-time issuance
Your bond journey
One contract, four bonds - capital free across the lifecycle.
Every stage of a manufacturing supply contract has a matching surety bond. Here's how they line up.
01 · Tender stage
Bid Bond
Replaces your EMD on PSU and government supply tenders. Zero margin for BBB+ rated manufacturers.
View bond 02 · Contract awardedPerformance Bond
Guarantees delivery and quality compliance. 10–20% margin vs 50–100% for a bank guarantee.
View bond 03 · MobilisationAdvance Payment Bond
Secures advances on large production orders without depositing matching cash collateral.
View bond 04 · Post-completionRetention Money Bond
Releases retention on supply-and-installation contracts while maintaining warranty-period security.
View bondHow we help
Why manufacturers choose Assurety
The fix
Assurety underwrites your order book and production capacity, not your cash - so working capital stays on the shop floor where it funds the next production run.
Multi-contract support
Run bonds across active contracts - not capped by bank lines.
Dedicated specialist
A manufacturing-focused specialist on every application.
Claims protection
An investigative process guards against unjust forfeiture.
The comparison
Bank guarantee vs. surety bond.
| Metric | Surety Bond | Bank Guarantee |
|---|---|---|
| Margin / collateral | 10–20% (nil for BBB+) | 50–100% cash |
| Issuance time | 5–7 days (24–48 hrs repeat) | 2–4 weeks |
| Bond capacity | Beyond bank credit limit | Capped by credit line |
| Claim handling | Investigative - protects you | Unconditional, on-demand |
Margin / collateral
Surety Bond
10–20% (nil for BBB+)
Bank Guarantee
50–100% cash
Issuance time
Surety Bond
5–7 days (24–48 hrs repeat)
Bank Guarantee
2–4 weeks
Bond capacity
Surety Bond
Beyond bank credit limit
Bank Guarantee
Capped by credit line
Claim handling
Surety Bond
Investigative - protects you
Bank Guarantee
Unconditional, on-demand
Accepted by
Government and private project owners, including
Defence PSUsGeMState industrial corporationsCentral ministriesPrivate manufacturers
Ready to scale your manufacturing business?
Share your project details and we'll have an indicative quote ready promptly.
