If you’re a business owner, then you know that supply is king.
But, sourcing materials is a costly and time-consuming process. There’s always that fear in the back of your mind that you may not receive what you’ve ordered, or worse yet—never hear about it again. That’s where supply bonds come in!
Supply bonds provide peace of mind when buying from new or unknown suppliers by guaranteeing payment if you didn’t receive goods on time or nothing at all. Contact Northwest Insurance Agency today to learn more about supply bond options available in your industry!
Keeping your business from being on the hook for missing supplies
Your company needs to buy something in bulk this time. You want to make sure you get what you need, but it’s not advisable to trust your suppliers immediately. What can you do?
There’s an easy solution! Supply bonds are contracts between the supplier and the company that needs to buy something. They act as insurance for buyers who fear their suppliers won’t deliver what they promised. If the supplier doesn’t sell what they promised, then the company has to pay for it.
Secure the supply chain with a fraction of the cost
Supply contracts also offer competitive prices for materials, which means lower maintenance costs and fuel demands! The benefits don’t stop there; supply agreements are less risky than formal contracts because we require no upfront payments. It eliminates time lost from building new relationships while still guaranteeing quality products at an affordable price.
In addition, these bonds provide some protection against inflation since they have a price as a percentage of anticipated sales volume over the contract period. Supplies contracts are an excellent way to secure material supplies and help grow your business through leveraging suppliers.
Investment to ensure no compromise in production and quality
When you apply for a supply surety bond, we will give you a quote of how much it would be if you default on your agreement. We will also tell you about any risks that might affect your ability to pay for supplies if this happens.
The more paperwork you fill out, the better. We will ask you about your credit score and financial statements. Our surety company wants to ensure that if you can make any claims, we can cover everything.
Rely on Northwest Insurance Agency for the best supply insurance coverage you can get
Are you concerned about a supplier not delivering? You can complete purchase orders benefits from supply bonds because it provides certainty of delivery without the risk of financial loss. Northwest Insurance Agency has been providing supply bond insurance since 1970 and can help you get them too. We have a long history of supplying reliable bonds for suppliers, guaranteeing the delivery of your materials.