top of page

Advantages of Hiring a Surety Bond with Bonds & Credit

  • Financial Protection: Protects your company against the risk of non-payment or default by your clients or suppliers, ensuring the continuity of your operations without unexpected interruptions.

​​

  • Greater Commercial Capacity: Allows you to access larger contracts, new bidding processes, and more demanding markets that require this type of guarantee to close deals.

​​

  • Improves Your Image and Credibility: By having a surety bond, your company projects strength, commitment, and responsibility to your business partners.

​​

  • Agile and Personalized Process: At Bonds & Credit, we understand the dynamics of your business. That's why we offer a rapid analysis and issuance process, with personalized advice and solutions tailored to your needs.

​​

  • No Capital Immobilization: Unlike other guarantees such as deposits or pledges, surety bonds do not require retaining capital, freeing up liquidity so you can continue investing in your growth.

Persona analizando gráficos en pantalla

In an increasingly competitive and demanding business environment, protecting your cash flow and ensuring contract compliance becomes essential. A surety bond is a financial tool that acts as a solid backstop for your business, offering guarantees of compliance, payment, or execution to third parties. In other words, it functions as a guarantee that protects both your company and your business partners against potential contractual breaches.

SURETY BONDS

A surety bond is a legal and financial agreement in which one party guarantees another the fulfillment of an obligation or commitment, backed by a third party—the surety or insurer—who acts as guarantor in the event of default.

Basic structure of a surety bond:


The Surety (Principal): The person or company that must fulfill an obligation (for example, execute a contract, deliver a service, or pay a sum).

​

The Beneficiary (Obligee): The person who receives the guarantee that the obligation will be fulfilled.

​

The Surety: The financial or insurance entity that issues the bond and is financially responsible if the surety defaults.

Gráficos financieros

About Our Business

In a business world where trust and security are key, having solid collateral can make the difference between closing a deal or losing an opportunity. Surety bonds are a strategic tool that protects your company against financial risks, guarantees contract compliance, and strengthens your reputation with clients and business partners. Discover how this solution can boost your growth with support, solidity, and peace of mind.

Los hombres de negocios con los paraguas
La firma de un contrato

What is a surety bond used for?

A surety bond is used to protect the beneficiary in the event that the surety fails to fulfill its obligations. It is very common in:

​

  • Public and private contracts

​​

  • Construction and infrastructure projects

​​

  • Import and export

​​

  • Tax or customs obligations

​​

  • Business relationships with credit risk

reunión

What Is a Surety Bond Used For?

Surety bonds are commonly used in public and private contracts, bidding processes, commercial relations, the importation of goods, the execution of works, or the provision of services. They serve to provide trust and legal security between the parties involved, since in the event of non-payment or breach, the insurance company backing the obligation comes into play.

How Does It Work?

A surety bond involves three parties:

​

  • The Surety (you or your company), who has the contractual obligation.

  • The Beneficiary, who receives the performance guarantee.

  • The Insurer or Surety, who is responsible in the event of noncompliance.

 

If the agreement is not met, the beneficiary can file a claim with the insurer, which will assume the risk up to the guaranteed amount. This provides immediate security and support to all parties involved.

bottom of page