Industry News
The Real Reason Sureties Require Fund Control (And Why It Matters)
Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.
When a surety company issues a bond, the main goal is simple, to make sure the job gets finished and no one loses money. Even if a company has deep experience and strong finances, that does not always mean project money will be handled the right way. Because of this, a surety may ask for fund control when there is more risk.
Maintaining Strong Banking Relationships Supports Surety Bonding Capacity
Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.
Having a good relationship with your bank can pay dividends for your business when obtaining bonds from your surety. Managing that line of credit appropriately can be a resource of available working capital which surety carriers likes to see, but when it is not utilized as expected by your bank, it could become a substantial detriment to your operations and ability to secure bonds.