Why is collateral sometimes required for bonding?
Collateral is not an issue with the standard or secondary surety markets. In the alternative or substandard surety marketplace, collateral may be required when a bonding situation is viewed as hazardous, if the contractor is financially challenged, or because of the lack of credible financial information. Again, we have many surety alternatives and we access markets that may require collateral only when absolutely necessary. We also handle all of the paperwork to facilitate the use of collateral when it is necessary to obtain bonding.
