Bonds Vs. Other Instruments

Q. What are the advantages having surety bonds present over other forms of financial assurance?

1) Bonds avoid over-funding through the use of trust funds.

2) Bonds allow for maximum efficiency of capital and resources avoiding double funding.

3) Bonds allow for rate adjustments as the collateral fund grows.

4) Bonds are not a significant drain on cash resources.

5) Bonds do not encumber balance sheets and are not reportable perse.

6) Bonds enhance your financial profile when applying for short and long term contracts.

7) Bonds do not require an investment-grade bond rating.