Business transactions are normally replete with various risk elements. Many times, the providers of goods and services may not be able to adhere to their promises made while offering to sell. Hence there needs to be a mechanism to protect the interests of the customers and surety bonds are one such mechanism available in the market. Surety companies provide surety bonds to business enterprises on application. They verify the various credentials of the firm like financial standing, reputation, product reliability, credit worthiness etc. Once a company is able to satisfy the surety bond provider on these requirements, it will be able to obtain the surety bond for its business. A customer will be willing to transact with a business firm having the surety bond with more enthusiasm as he knows that his payment is protected against any possible default, fraud or deficiency in the service. Though the firms owning the surety bond has no direct protection, it will be able to indirectly benefit as the surety bonds provide them with an additional marketing feature to project themselves to the customers. We can now realize that how the surety bonds serve as a sure mechanism for both the suppliers and the customers get immensely benefited.