COVID-19 has significantly impacted all credit markets, both directly and indirectly, including the Surety Credit marketplace. Based principally on supply chain issues, employee availability and productivity as well as bank credit availability, surety markets are re-evaluating the credit they have been willing to extend – both on a general and specific account basis.
The underwriting criteria and understanding between a contractor and their surety may have been quite predictable in the past; however, our financial world has radically changed and at this point in time, nothing in that regard can just be assumed any longer or taken for granted.
In these challenging times it more important than ever to have a “backup surety lines of credit” for any account that depends on surety credit as a means of obtaining work. Now, like no other time in history, has a backup line of surety credit made more business sense.
Talk with a surety bond specialists or financial advisor to learn more about how they, can help you navigate the uncertainties of the novel coronavirus and discuss the best way to secure a backup line of surety credit for your business.