Author: Ramon Lucas

In construction, a project must be completed properly, on time, and within budget. One way to make sure this happens is by using performance bonds and guarantees. These tools give financial protection to the project owner if the contractor fails to do their job. What Is a Performance Bond? A performance bond is a financial guarantee provided by a bank or insurance company, known as a surety, on the contractor’s behalf. An important question to consider is how is a performance bond different from a labor and materials bond—while a performance bond ensures the contractor completes the project as agreed,…

With changes in the economy and interest rates, institutions face new challenges in credit management. Below are five strategies that can strengthen credit risk practices in today’s environment. The lending market is shifting, with rising rates and signs of slowing economic activity shaping the outlook. As loans originated between 2017 and 2022 reach renewal, financial institutions must address the effect of higher interest rates on these deals. The following strategies highlight effective approaches to managing credit risk during uncertain times. 1. Be proactive and diligent in monitoring the loan portfolio Borrowers’ ability to meet obligations may be affected by today’s…