Establish a Surety Bond Credit Line
Surety bonds provide the public or private project owner with a guarantee that the contractor is capable of completing the contract on time, within
budget and according to specifications. Establishing a surety bond credit line allows the Principal to transfer the risk of the subject projects completion
where the surety (insurance company) assures the obligee (the project owner) that the principal (the contractor)
is capable of performing the contract in accordance with the contract documents.
The usual underwriting requirements call for at least two years of prepared financial statements along
with a contractor questionnaire and a complete copy of the obligee’s performance bond requirements. When it
comes down to it, a well-managed bond program can not only enhance a contractor’s credit options,
but can be the difference between success and failure for your business.