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.