A surety bond guarantees that the principal will perform the duties they have been hired to perform. Surety bonding is an essential tool that can increase your customers’ trust in your business, build your reputation in your industry while ensuring your business can operate efficiently from a cash flow perspective. Your business may also be required to post a bind as part of your licensing requirements. These type of surety bonds typically guarantee that the principal will comply with any codes or regulations established by the obligee, who is usually a government body such as a city, town, or municipality.