Company Purchase needs Financial Contract Bond

[Bond Guy]

I am in the process of buying a company and the seller wants a bond to guarantee payment. I am paying $6.5M down with $100k a month for 48 months and 49th month a baloon of $28.7M Do you have a bond to cover this and if yes what would you charge for this. If not who would you recommend I contact.

[Surety Queen]

I am in the process of buying a company and the seller wants a bond to guarantee payment. I am paying $6.5M down with $100k a month for 48 months and 49th month a baloon of $28.7M Do you have a bond to cover this and if yes what would you charge for this. If not who would you recommend I contact.

It sounds like the seller is looking for some kind of financial guarantee. To my knowledge, there is no bond to assure that you will be making the payments. I would think that whatever contract you sign would hold up in court in the event that you default on your agreement.

[bondman]

What you are looking for is usually covered by a standby L/C. Try your main relationship bank. I imagine that it will be relatively expensive though.