Sureties and Bonds are contractual instruments that provide third-party guarantees in commercial and trade-related transactions. Typically issued by banks or specialist surety providers, they ensure that an obligation — such as delivery of goods, project completion, or payment — will be fulfilled. If the primary party fails to perform, the guarantor steps in to compensate the beneficiary.

Common in construction, infrastructure, and international trade, these instruments can include performance bonds, advance payment guarantees, bid bonds, and customs bonds. Unlike insurance, sureties are contingent liabilities and often require recourse to the applicant in case of default.

By reducing counterparty risk and enhancing trust between trading partners, sureties and bonds are essential tools in both public and private procurement, facilitating access to opportunities and compliance with regulatory or contractual requirements — particularly in unfamiliar markets or under high-value contracts.