The Importance of a Financial Guarantee Bond

A financial bond is a bond that cannot be cancelled and ensures that a payment will be made if the principal is unable or unwilling to fulfill the obligations specified in the contract.

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There are several items that may need to be submitted when applying for a financial, or any surety, bond:

  • An application which sums up a thorough overview of the business’ financial situation.
  • A formal record of the financial activities, such as statements that evaluate the financial strength, performance and liquidity of a company. The statements should include assets, liabilities, equity, income and cash flow statements.
  • It is also important for the surety to know the history of people associated with the company. By doing so, the surety makes sure that the business is skilled enough to perform the task.
  • For many projects, a principal needs to have a permit or license to prove that the project can be completed satisfactorily. There are certain commercial bonds that will require the necessary permit or license before the bond can be acquired.

Summary:

A financial bond is a guarantee that a contractual obligation will be fulfilled.  In order to apply for a financial (or any surety) bond, an application, formal record of financial activities and other documents may be required.

We here, at GotSuretyBonds.com are an independent bond-only agency, committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each and every one of them unsurpassed attention and support to ensure a mutually beneficial relationship.  We have a keen understanding that success for everyone is only possible through helping all of our constituents achieve their goals and objectives, we believe that a truly satisfied customer, employee or vendor is the best business strategy of all.  Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. Because of our credibility within the underwriting community and longevity in the industry, we are able to act as powerful advocates for our clients. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.

 



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