when the details are discussed. It is
helpful that your surety understands
the business cycle of your industry,
as it is unique and will help to place
your financial standing in its proper
perspective.
Collection agencies should
include bond preservation in their
risk management preparedness. The
current economy has brought an
increase in requests from sureties
for irrevocable letters of credit for
bond continuance across the board.
Collection agencies may want to review
the line of credit they have established
with their bank so they are prepared
for any difficulties should they need
this collateral to preserve their bonds.
Your vision, your telephone and
Agencies will also want to verify that
their bank is approved by the surety.
Requests for collateral from a surety
should be reviewed carefully with
your representative as negotiations
may be warranted. These negotiations
could result in a reduced amount, an
extension of the deadline or a waived
collateral requirement.
Finally, if you have concerns about
how your financial information will
affect your bonds, don’t wait until
your annual review rolls around. Your
representative may be able to assist you
in advance with additional information
that may put your circumstances
in a more positive light during the
underwriting process. These steps may
take time, so it would beneficial to get a
head start with the process. cm
Janis St. Martin, CIC, is vice president
of Collectors Insurance Agency Inc., a
subsidiary of ACA International.
That’s the recipe for success
for a small or start-up collection business.
And it’s only
$149
per month!
Try it now for
30 days
risk free!
The content of this article is provided
for informational purposes only and
should not be considered as legal
advice. It does not alter, amend, modify
or supersede the terms and conditions
of your bond language or indemnity
agreement.
Visit www.accelerateddata.com/myadvantedge
today or call 303.706.1101 to learn more!
ACA’s Bond Unit offers surety services
specifically for the collection industry.
For additional information on how
your agency could benefit from their
expertise, contact them at + 1(952)
926-6547 or e-mail riskmanagement@
acainternational.org.
