Contract financing is an excellent way for your business to access funding against a contract which you have already won.
Our LPO financing solution gives you access to cash flow to access the inventory to complete customer orders.
Free up funds from your unpaid customer invoices, helping you overcome the cash flow delay between invoicing and receiving payments.
Contract financing is an excellent way for your business to access funding against a contract which you have already won.
Our LPO financing solution gives you access to cash flow to access the inventory to complete customer orders.
Free up funds from your unpaid customer invoices, helping you overcome the cash flow delay between invoicing and receiving payments.
This month, we shine a spotlight on one of the most crucial yet overlooked tools in procurement: the Performance Bond. Whether you’re a contractor chasing a multi-million government contract, a supplier responding to an LPO tender, or an SME looking to scale up, the performance bond might be the make-or-break factor in your bid.
A Performance Bond is a financial guarantee issued by a trusted third-party (usually a bank or trade finance partner) assuring the project owner that you’ll deliver the contract as agreed. If you fail, the bond compensates for losses or enables the hiring of a replacement contractor.
In simple terms: It protects your client- and your professional reputation.
✅ Proves You Can Deliver
It signals to awarding institutions: “I’m credible, well-prepared, and financially backed.”
✅ Access to Bigger Government Projects
Most public sector and parastatal tenders require a valid performance bond before awarding or releasing a Letter of Commencement.
✅ Speeds Up Mobilization & Payments
Contractors with bonds are seen as lower risk- fast-tracking processes like mobilization and advance payments.
✅ Builds Long-Term Credibility
Repeat business often comes down to how reliably you deliver. Performance bonds help project owners feel confident about your ability to follow through.
Neglecting to secure a bond before bidding on tenders can expose your business to the following:
🚫 Tender disqualification
🚫 Delays in project kick-off
🚫 Loss of reputation and credibility
🚫 Legal liabilities or blacklisting from awarding bodies
Think bonds are only for the big guys? Think again. At Recolte, we make bond financing accessible to SMEs and first-time bidders with:
🟩 Fast approval in 24–48 hours
🟩 Minimal or zero cash collateral options
🟩 Support for first-time tender applicants
🟩 Repeat contract facilities for loyal clients
💬 “We won our first county roadwork tender because of the bond Recolte helped us secure. It changed everything for our business.” – Karanja, Contractor, Nakuru
A Performance Bond is not an expense- it’s an investment in trust, opportunity, and growth. It’s what separates the “hopefuls” from the serious contenders in today’s competitive tendering landscape.
Prepare your bond like your future depends on it- because it just might.
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