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Lease Bonds for Petrol / Service Stations in Australia / New Zealand 

Leasebonds are an alternative to bank guarantees for commercial lease agreements and are identical to a bank guarantee; they have the same wording and are an unconditional, irrevocable, pay on demand undertaking.

Leasebonds free up the cash collateral that is to be provided by the lessee in order to obtain a bank guarantee; the lessee’s working capital is improved by retaining valuable cash reserves. No tangible securities are required from the lessee. In order to qualify they will undergo a credit check, and once approved pay an annual premium.

Leasebonds carry exactly the same obligations at law as a bank guarantee while delivering a flexible and effective alternative to traditional guarantees.

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