Financials

[Mr. Bond]

I have a Sales Tax Bond that I have already paid the renewal premium on and now the surety is requesting updated business financials and verification of liquid assets. How can they do this after I have already paid?

[marietta68]

Originally Posted by Mr. Bond

I have a Sales Tax Bond that I have already paid the renewal premium on and now the surety is requesting updated business financials and verification of liquid assets. How can they do this after I have already paid?

Easily! The bond company wants to update its underwriting records and can do so at any time - you might want to re-read the application or indemnity agreement you signed when the bond was originally written. Generally speaking, updated information will be requested annually for financial guarantee bonds. Remember, the bond is unsecured credit, and the bond company wants to make sure your business is able to meet its financial obligations.