US-based insurance distribution company, Alliant Insurance Services, has launched Alliant Commercial Surety, a new national platform targeting the commercial surety market.

Alliant, which offers several alternatives to traditional letters of credit (L/Cs) in the surety market, will focus on surety programmes that offer cost savings, increased surety credit capacity, and liquidity solutions for both public and private sector clients.

Strengthening foothold

The establishment of Alliant Commercial Surety is in line with Alliant's efforts to strengthen its surety foothold.

This new Alliant business unit offers several alternatives to traditional L/Cs in the surety market. These alternatives are designed to help companies

Surety benefits

Surety bonds are financial instruments that guarantee the performance of obligations, such as construction contracts or regulatory requirements, without requiring collateral like L/Cs.

Unlike L/Cs, which tie up a company's credit line, surety bonds generally do not count against a company's bank credit, thus improving liquidity.

They also tend to offer more protection against wrongful claims, as surety companies typically require proof of default before paying out, unlike L/Cs, which can be drawn upon without justification, according to Alliant.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.