General contractors and businesses with government contracts frequently need bonds. For example, all Federal construction contracts greater than $150,000 require a bond as a condition of contract award. But other businesses need bonds, as well. These include temporary staffing agencies, janitorial firms and even car dealers. Bonds are sold and backed by a surety company, which guarantees your firm’s performance. It’s a good alternative to using a business line of credit, because it frees up potential capital your business can use to grow.