The Importance of providing regular information to your sureties

For businesses that rely on surety bonds, maintaining a strong and transparent relationship with your surety is just as important as securing the bond itself. One of the most effective ways to do this is by keeping your sureties regularly informed with up-to-date financial information including annual financial statements, management figures, workload, banking arrangements and cashflow projections.

Under the terms of any Deed of Indemnity (the minimum required security for a bond) , indemnitors are typically required to provide financial information to the surety upon request and to notify them of any material changes in trading circumstances. This is not simply a formality; it is a core part of the surety relationship that if not adhered to can have serious ramifications. However, beyond contractual compliance, proactive financial disclosure delivers a clear commercial benefit. Sureties are far more comfortable extending and maintaining bonding support when they have confidence in the underlying financial position of the business.

Sureties assess risk not only on historic performance, but on forward-looking indicators. Regular updates on current and projected workload, cashflow, funding arrangements and profitability trends allow sureties to understand how your business is trading in real time, rather than relying on outdated accounts that may be 12–18 months old. This context is especially important during periods of growth, market volatility, or tight liquidity, precisely when bonding capacity matters most.

Businesses that engage openly with their sureties typically benefit from faster bond approvals, greater flexibility on bond limits, increased appetite during peak workload periods and continued support in challenging trading conditions. In contrast, a lack of information can lead to delays, reduced capacity, or increased scrutiny at exactly the wrong time.

At DRS, we have a wealth of experience in managing this flow of information. We help ensure that financial updates are presented clearly, consistently, and in the right context - highlighting strengths, explaining movements, and addressing concerns before they become obstacles. 

If you’d like help preparing or presenting financial information to your sureties, DRS can make the process straightforward and work in your best interests every step of the way. Please don’t hesitate to get in touch.