Manage risks associated with contractual obligations with a surety bond.
Who Buys Surety Bonds?
Surety bonds are often bought by any party committing to a contract with specific obligations, such as:
- A Building Contractor needs to provide a Bond to their employer (beneficiary)
- An Importer needs to provide a Bond to HMRC (beneficiary) to support a duty deferment facility
- A Manufacturer needs to provide a Bond to a purchaser (beneficiary) for an advance payment
What Is A Surety Bond?
A surety bond supports a company’s contractual obligation and is effectively a guarantee to pay a loss sustained as a result of a breach of contract.
It is purchased by the contracting party, usually on the insistence of the company employing the contractor, and is given in the favour of the employing business.
In the event of the contractor defaulting on the contract, the surety bind compensates the employing business for any losses.
The Advantages of A Surety Bond
- A bond does not restrict a company’s banking facility or working capital and is treated as a “contingent liability” rather than bank debt. This means it is effectively “off-balance sheet”.
- We only work with respected guarantors that most employers, local authorities and government agencies approve, due to excellent credit ratings.
- The Surety Underwriters of our guarantors provide a fast pre-vetting service to ensure suitability.
Get In Touch
If you would like more information about surety bonds, please contact our team using the details below, or simply fill in the form and we will get back to you as soon as possible.
