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Funds Control and Surety Bonding – The Good and Bad

Funds control is a term used in surety bonding and can also be called funds administration or just escrow. It usually involves a third party handling the contract proceeds to process payments for bonded contractor. The idea is very similar to a construction loan on the residential side. The process typically looks something like this:

Letters of Credit vs. Surety Bonds

If you are a small business owner, you have likely heard that a single unfulfilled obligation or missed payment can have a huge impact on your operations. If you want to protect yourself and your customers, you can use letters of credit or surety bonds to manage the risks.