Q. What are the advantages having surety bonds present over other forms of financial assurance?
- Bonds avoid over-funding through the use of trust funds.
- Bonds allow for maximum efficiency of capital and resources avoiding double funding.
- Bonds allow for rate adjustments as the collateral fund grows.
- Bonds are not a significant drain on cash resources.
- Bonds do not encumber balance sheets and are not reportable per se.
- Bonds enhance your financial profile when applying for short and long term contracts.
- Bonds do not require an investment-grade bond rating.