Both surety bonds and letters of credit are used as a risk management tool on construction and development projects. For this reason, Goldleaf Surety is often asked surety bond or letter of credit – what’s the difference.
In September and October of 2015, Goldleaf Surety did a series of blog post comparing surety bonds and letters of credit in detail. (Surety Bonds and Bank Letters of Credit Comparisons, Part 1; Surety Bonds and Bank Letters of Credit Comparisons, Part 2; Surety Bonds and Bank Letters of Credit Comparison, Part 3; and Surety Bonds and Bank Letters of Credit Comparisons, Part 4).
The question on the differences between these two risk management tools comes up on a consistent basis from our clients, so we wanted to share an article from the September 9, 2020, Surety Bond Quarterly entitled Surety Bond or Letter of Credit: What’s the Difference?
When your construction or development project has you choosing between these risk management tools, contact Goldleaf Surety Services to learn the answers to surety bond or letter of credit – what’s the difference. Our helpful and knowledgeable staff are always available to answer any questions you may have about these two credit instruments – or any of your bond questions!
