Why is a surety bond an alternative to a bank letter of guarantee?
Every contractor and supplier with a growing project portfolio eventually faces the same problem: bank credit lines are exhausted and no new letters of guarantee can be issued.
A surety bond solves this problem. It uses the insurance company's capacity — not your bank credit limit. Under Law No. 4734 (Public Procurement Law) in Türkiye, surety bonds are legally equivalent to bank letters of guarantee in public tenders, and are also accepted in many private contracts.
Bank limit preserved
A surety bond does not draw on your bank credit line — it provides a separate capacity.
Legal acceptance
Accepted in place of bank letters of guarantee in public tenders and VAT refund processes.
Portfolio growth
Bond multiple projects simultaneously — your growth is no longer limited by credit.
Balance sheet benefit
Bank guarantee credit does not appear on the balance sheet; financial ratios remain clean.
Which surety bond types do we work with?
Neolife is an SEDDK-licensed independent broker placing all types of surety bonds.
Bid Bond (Tender Bond)
A bond securing participation in a tender. Guarantees that the winning bidder will sign the contract.
Performance Bond
Guarantees that the contract will be performed in accordance with its terms. Mandatory in public tenders.
Advance Payment Bond
Guarantees that the advance paid to the contractor will be refunded if the project is not completed.
Completion & Performance Bond
Guarantees technical completion of the work to specification. Preferred in large construction projects.
Maintenance Bond (Warranty Bond)
Covers obligations during the warranty period after handover. Typically 1–2 years.
Customs & Tax Bond
For VAT refund applications and customs obligations under the Turkish Tax Procedure Law.
Special Bond
For EMRA-licensed energy companies, private contracts outside public procurement, and special arrangements.
International Surety Bond
International surety bond placement through the London and European markets for projects abroad.
How does the surety bond process work?
Free feasibility analysis
We learn the type, amount and duration of your project and pre-assess which insurers are likely to be suitable.
File preparation
We help you prepare the required financial documents and project files together, and support you in completing any missing items.
Multiple quotation
We submit your file to multiple insurers and compare the quotations received on coverage, limit and premium.
Policy issuance
We select the best quotation, review the policy terms and negotiate project-specific conditions on your behalf.
Policy management & renewal
We manage extensions, limit increases and project changes; at renewal we go to market again on your behalf.
Which documents are required?
Required documents vary by bond type and amount. Core list:
| Document | Notes |
|---|---|
| Last 3 years balance sheet and income statement | CPA-certified |
| Tax registration certificate | Current |
| Trade Registry Gazette / Signature circular | Authorization document |
| Project contract or tender specification | For the bonded work |
| Certificate of activity | Relevant chamber registration |
| Consolidated financials if subsidiaries exist | For group risk assessment |
The insurer may request additional documents based on its risk assessment. Neolife manages the file preparation process on your behalf.