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Old 12-11-2007, 12:37 PM
Surety Queen Surety Queen is offline
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Join Date: Oct 2007
Posts: 558
Default Supply Contract Bond

Quote:
Originally Posted by Bond Guy
Seeking bond that I can't easily classify... It's a payment bond for a customer-supplier relationship. Customer pays supplier $35k-$50k WEEKLY for product. Supplier wants customer to purchase bond should customer fail to make good on money owed. Thanks!

If the customer is KMart and the supplier is Jacqueline Smith - then perhaps a supply bond could be obtained. Otherwise, the supplier needs to count on the contract they have with the customer to make sure payments are received. A supply bond is required when there is public money involved - like your supplier is providing product for a local municipality.
Hope this helps.
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