As the credit market difficulties continue and the uncertainty of bank capacity extends beyond the financial markets, alternative relationships should be established and developed. Banks have been forced to reassess how they use their capital, and their risk / return appetite has intensified. Our clients are reporting that banks are moving away from bank guarantee facilities in favour of ‘cash’working capital facilities at increased rates.

An economy in recession creates increased risk and uncertainty in most transactions, and corporate insolvency rates are already rising. Consequently the demand for bonds and guarantees is increasing as a protection against financial loss. Companies that have prepared for this inevitable increase in economic risk will be better placed to weather the storm.

Marsh’s Surety Expertise

Marsh’s Surety Practice has the experience, expertise and insurance market relationships to provide clients with secure surety solutions on competitive terms and with strong and respected surety companies.

Companies that have never previously investigated surety bonding are needing to respond to the kind of questions where a surety solution might provide the answer:

• Do you use your banking facilities for bonds and guarantees, but are concerned about bank stability?
• Is working capital management a high priority?
• Is your supply chain strong? Will your suppliers survive a deep recession?
• Did you recently accept a parent company guarantee – what is it worth?