The first article in the September 14 edition of NASBP SmartBrief highlights that project investors in today’s market want protections for their investments, whereas in the past they might have given the benefit of the doubt that there would be a reliable flow of money. And research NASBP did while creating the NASBP Producer Communications Toolkit 2.0 showed that “lenders are also sensitive to the marketplace and how other lenders handle surety bond requirements on financed projects.”

This economic climate is a good time to persuade more lenders to require surety bonds on bank-financed projects. NASBP bond producers know that, with a successfully completed project, the lender will see a benefit to his or her reputation, relationships, and bottom line.

NASBP producers have access to many great resources to share with lenders, all in the NASBP Producer Communications Toolkit 2.0. These tools can educate lenders about surety bonds and remind them that bonds offer peace of mind and ensure project success.

The Benefits of Surety Bonds to Lenders
This slideshow is great resource for presentations to lenders, or to borrow wording from for discussions. The slides convey that the requiring surety bonds on bank-financed construction projects will help ensure a successful project that will enhance their reputation in the community while protecting their investment.

Talking Points with Lenders
These talking points were crafted with a lender’s mindset in mind. They want to win business, make money, and keep their successful reputation in the community. Use these in presentations, discussions, and email communications with lenders.

NASBP Pipeline Spotlight: Dual Obligee
This NASBP article discusses the benefits of surety bonds to lenders. It also introduces the concept of a dual obligee rider, which can be added to a bond to extend the surety’s obligation to a third party, usually a construction lender. Share this article with lenders so they know about these additional rights if they require surety bonds on a bank-financed project.

NASBP Surety Story Videos

American Savings Bank

This video focuses on the importance of a lender’s community reputation. This lender discusses the importance of project completion to his community’s success. He relies on a bonded general contractor to complete the project on time and on budget.

First Hawaiian Bank

This video highlights the importance of surety bonds to ensure projects are completed and financial investments are protected. The lender discusses a client who was initially reluctant to require a surety bond on a construction project, but the bank would not provide financing without it. Later, when the project contractor defaulted, the surety completed the project. The project owner and the lender were relieved that the bond was in place and the project was successfully completed.

Central Pacific Bank

This video conveys the importance of the surety prequalification process to lenders. This lender shares that knowing who you’re doing business with and how they approach their work is key to ensuring a successful project.

Social Media Assets

These social media images, in conjunction with text NASBP provides in the Toolkit 2.0 or with your own words, can help direct your messaging to lenders. Using these images with specific language about community success and protecting investments will remind lenders of the benefits of requiring surety bonds on bank-financed construction projects.

These are just some of the valuable free tips and guidance NASBP bond producers will find to help them promote the surety product to construction project stakeholders, including project owners nasbp.org/guaranteed/owner, lenders nasbp.org/guaranteed/lender, architects nasbp.org/guaranteed/architect, and contractors nasbp.org/guaranteed/contractor. Visit the Toolkit 2.0 to learn more here: nasbp.org/guaranteed. Check out NASBP’s social media post every Friday to stay in the know about the NASBP Toolkit 2.0 Resources. #BeGuaranteedToSucceed #surety.