3 reasons why Avenue Bank Guarantees are the smarter choice for lease security

A Practical Guide for Landlords

When it comes to commercial property leasing, the right form of lease security isn’t just a formality - it’s your first line of defence. As a landlord, when you need to make a claim, your priorities are clear:

Certainty
Speed
No disputes or delays

With multiple options available to tenants - bank guarantees, cash bonds, lease bonds and surety bonds - accepting the right lease security is critical to protecting your interests.

Avenue Bank is the first and only Australian bank to specialise in bank guarantees. We’ve built a smarter, purpose-built solution for landlords who want safe, fast and reliable bank guarantees - without the administrative headaches and delays of traditional options.

With Avenue, you get the benefits of a bank guarantee from a trusted, fully licensed bank regulated by APRA and covered by the Australian Government’s Financial Claims Scheme.

Here’s how:

1. Unconditional, irrevocable and payable on demand

If your tenant defaults, you need fast, undisputed access to funds. Avenue Bank Guarantees are:

Unconditional and irrevocable - unlike some lease bonds that may lapse if premiums aren’t paid, our guarantees remain valid even in cases of tenant insolvency.
Fully regulated - we’re an Australian ADI, regulated by APRA and provide government guaranteed deposits that are protected under the Financial Claims Scheme (FCS).
Payable on demand - claims are paid on demand within 48 hours.

💡 Why it matters:

Lease bonds often rely on offshore underwriters and intermediaries, creating accountability gaps. Some policies can lapse without the landlord’s knowledge if premiums aren’t maintained. Avenue eliminates these risks by providing a solution that is payable no matter the disruption.

2. Less admin and hassle-free

Depending on the asset type and associated legislation, cash bonds often require:

Registration with Fair Trading.
Ongoing compliance and audit obligations.
Time-consuming management.
Potential disputes over account handling.

Avenue Bank Guarantees remove these administrative burdens. We handle the paperwork so you can focus on managing your property, not managing bank accounts or compliance requirements.

💡 Why it matters:

Cash bonds can be costly to administer, with hidden compliance and audit fees. Our bank guarantee solution simplifies lease security for landlords, and property managers.

3. Widely accepted, fully protected, and preferred across the commercial property ecosystem

Not all lease securities are equally trusted by the market. Lease bonds may contain policy limitations and exclusions that leave landlords exposed - for example, certain property damage claims not being classified as ‘covered events’. Avenue Bank Guarantees offer:

Market-wide acceptance - trusted and accepted, referred by landlords, asset managers, leasing agents and legal teams.
Complete confidence - payment is made on demand, without disputes, legal challenges or policy loopholes.
Security for all asset types - suitable for office, industrial, retail, healthcare, and more.

💡 Why it matters:

Avenue Bank Guarantees are a trusted financial commitment and are widely accepted by beneficiaries - offering certainty whether you manage a single asset or a national portfolio - we cover any asset type e.g. office, industrial warehouse, retail shop and more.

Why landlords trust Avenue Bank

Avenue Bank is purpose-built for the commercial property ecosystem. Our bank guarantees deliver security, reliability, and confidence for landlords and tenants alike. With Avenue, you get:

Unconditional, irrevocable and payable on demand bank guarantees.
Local, specialised support in the event of a claim.
Protection under the government’s Financial Claims Scheme (FCS).

Avenue Bank - the guarantee landlords can bank on.

Find out more here.

To speak to one of our team of bank guarantee experts, contact:
Australia: 1300 283 265
Monday - Friday between 9am - 5pm AEST