Supply Contract Bond?

[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!

[Surety Queen]

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.

[bondman]

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!

You would be better off using a standby letter of credit payable against commercial invoices and a statement of non payment.