Sole traders, partnerships and limited companies are now assured of a guarantee in their bidding processes as listed NBS Bank has reviewed the bid bonds limit from K100 million to K200 million.
According to NBS Bank plc’s Head of Marketing and Customer Experience, Tamanda Ng’ombe-Longwe, the new facility aims at ensuring Small and Medium Enterprises (SMEs) have a guarantee in their bids for various projects and services.
“Most institutions, especially Government and Non-Governmental Organizations (NGOs) require that people bidding or providing various goods and services should provide a bid bond or a guarantee from a financial institution. As a bank, we have the needs of our customers at heart and therefore decided to extend the limit of pre-approved unsecured bid bonds to K200 million.”
“Just like our other services, access to this facility is also easy and fast. Customers just need to bring an application letter and bid documents. They should have an account with any Service Centre credited with the applicable fees plus monthly ledger fees. As an additional sweet spot for our customers, accounts opened on the same day of application are also eligible to access this facility,” said Ng’ombe Longwe.
Reacting to the development, Zahid Bobat, Chief Executive Officer (CEO) for Blue Water Drilling said: “The bid bonds provided by NBS Bank are highly proficient and convenient. The Bank has really come to our aid when we need a bid bond, Additionally, they are timely and respond to the sense of urgency a customer has. So overall, the service and experience of the bid bonds from NBS Bank has been satisfactory.”
A bid bond is typically obtained through a surety agency, such as an insurance company or a bank, and helps guarantee that the contractor is financially stable and has the necessary resources to take on a project.