Surety Bonds Partnership with Finance professionals | Surety 007

In the world of finance and corporate advisory services, Chartered Accountants, Financial Consultants, Financial Advisors, and Corporate Advisors play a pivotal role in guiding their clientele towards sound financial decisions. Traditionally, these professionals have relied on Bank Guarantees as a means of providing financial guarantees to their clients. However, a paradigm shift is underway, with Surety Bonds emerging as a more attractive and efficient alternative, especially when powered by the innovative technology of Surety Seven (007).

Surety Bonds vs. Bank Guarantees: A Paradigm Shift

Surety Bonds, issued by insurance providers like Surety Seven (007), have gained traction as a superior option compared to traditional Bank Guarantees. This shift in preference is attributed to the numerous advantages offered by Surety Bonds, which are transforming the financial landscape in India.

• No Collateral or Cash Margin Requirement: One of the most significant advantages of Surety Bonds is that they do not require collateral or cash margins. This flexibility allows financial professionals to offer their clients a means of financial assurance without tying up valuable assets.
• Unlocking Line of Credit: Surety Bonds free up a line of credit from banks, primarily as they fall under the category of non-fund based limits. Important to note that this liberated credit can be effectively managed for other financial needs and investments. This provides clients with more financial maneuverability.
• Quick and Hassle-Free Issuance: Surety Bonds are issued in a streamlined, quick, and hassle-free manner. This is in stark contrast to the often cumbersome and time-consuming process associated with Bank Guarantees, making it a highly attractive option for both financial professionals and their clients.

Indian Ministry of Finance Mandate for Surety Bonds

The endorsement of Surety Bonds has received a significant boost from the Indian Ministry of Finance. In a circular dated February 2, 2022 (F.1/1/2022-PPD), the Department of Public Expenditure mandated the use of Surety Bonds for all matters related to public finance. This amendment to the General Financial Rules 2017 effectively means that all public institutions must now accept Surety Bonds as a valid alternatives to Bank Guarantees. This amendment to the law means that accepting Surety Bonds isn’t an option for Government of India entities but a compulsion.

Opportunities in the Infrastructure Sector

Financial Consultants and Corporate Advisors, in particular, have a unique opportunity to offer Surety Bonds as a lucrative option to their clientele, especially those involved in government projects, particularly in the infrastructure sector. Infrastructure projects encompass a wide range of industries, including construction, energy, telecom, aviation, and more. These projects often require substantial financial guarantees, making Surety Bonds an ideal choice due to their efficiency and cost-effectiveness. This is an INR 90 Trillion opportunity and the early entrants stand to gain loads

Surety Seven’s Technological Edge

Surety Seven stands out as a leader in the field, offering cutting-edge technology that powers Surety Bonds underwriting. The company’s technology-driven approach streamlines the entire process, from contractor assessment to determining premium rates and limits. Finally, this translates into a quick turnaround time, enabling financial professionals to provide their clients with prompt and reliable financial solutions.

Finance Professionals Contact Surety Seven (007) for Surety Bonds

For financial professionals looking to explore the world of Surety Bonds and leverage the technology-driven capabilities of Surety Seven, reaching out is easy. You can contact Surety Seven at +919911557724 or drop us an email at support@suretyseven.com.

Conclusion

Chartered Accountants, Financial Consultants, Financial Advisors, and Corporate Advisors have a unique opportunity to enhance their offerings by incorporating Surety Bonds into their arsenal of financial tools. Furthermore, with the Indian Ministry of Finance’s mandate (along with support from Ministry of Road Transport & Highways – India and Hon. MORTH minister Nitin Gadkari) and the technology-driven solutions provided by Surety Seven (007) , financial professionals can empower their clients with efficient, hassle-free, and cost-effective financial guarantees that open up new horizons for growth and prosperity. To learn more about Surety Seven and its innovative solutions, visit www.suretyseven.com.

Inspired by article from Pranjal Aneja, CEO of Surety Seven:

Empowering Financial Professionals: Offering Surety Bonds with Surety Seven’s Technology

Pranjal Aneja, CEO of Surety Seven Technology on LinkedIn