Performance Bonds with Collateral: "Buy Now, Pay Later"
The answer of course is to not do the collateral transaction in the first place
. Collateral can become a self perpetuating arrangement where it is easier to take the next bond from the surety than it is to move on even though you are unhappy with the arrangement. Contractors and their agents need to seek underwriters with the creativity and underwriting skills needed to write the business without the use of this so called "solution."
Performance Bonds with Collateral: "Buy Now, Pay Later"