Are surety bonds off balance sheet?

What Is A Surety Bond?A surety bond supports a companys contractual obligationand is effectivelya guarantee to pay a loss sustained as a result of a breach of contract.It is purcha

Are surety bonds off balance sheet?

What Is A Surety Bond?

A surety bond supports a companys contractual obligationand is effectivelya guarantee to pay a loss sustained as a result of a breach of contract.

It is purchased by the contracting party, usually on theinsistenceof the company employing the contractor, and is given in the favour of theemploying business.

In the event of the contractor defaulting on the contract, the surety bindcompensates the employing business for any losses.

The Advantages of A Surety Bond

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