SURETY SOLUTIONS BLOG

Do You Offer Surety Bond Payment Plans?

By Duke Revard on Nov 19, 2014 12:18:00 PM in

Cost of Surety Bonds

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surety bond financing 

 

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Surety bond sosts can vary widely from bond to bond. Some bonds are as inexpensive as the 4-year Kentucky Notary Bond which you can get for $30. That is literally 2 cents a day spread over the lifetime of the surety bond. The price for others can add up to a lot more than that. In fact, many small business owners find themselves with a surety bond costs that exceeds their current cash on hand.

This is when the next logical questions comes, “Can I make payments?” or “Do you offer surety bond premium financing?”

Good question.

The quick and easy answer is YES. We do offer surety bond premium financing. We get it. You are small business owner and cash is king and it is not always good to have all your cash tied up in your Surety Bond. However, you need a bond when the government says you need a bond to move forward with licensure or some other contractual agreement. If this is your situation, surety bond premium financing can be a great option.

 

surety bond financing

 

Relief for Those with Bad Credit

 

Sometimes when you’re down the hits just keep on coming. This can certainly be the case for those who have seen a drop in their credit score. Since credit is tied to the cost you pay; those with bad credit are often required to pay higher premiums on their bond. But the good news for folks with bad credit (generally thought of as a credit score lower than 650) is that premium financing can soften the blow of a high surety bond costs. premium financing becomes an essential step in ensuring that you have the cash on hand to continue run your business.

 

 surety bond cost

 

Can I Finance Any Surety Bond?

    

The short answer is no. Carriers have a threshold for financing that generally hovers around $1,000, allow you to finance higher premium surety bonds. However, the standard $100-200 license and permit bond premium must all be paid all up front.

 


Setting up a Surety Bond Payment Plan

 

Surety Bond Financing breaks your premium payments up into smaller, more manageable payments you can spread out over time. There are essentially three parties in the financing agreement; you (the person who needs bond financing), the finance company, and the surety bond company. But it is important to note that premium financing is only available on surety bonds that are able to be cancelled. This protects the surety bond company in the event that you fail to make your payments on the premium installment. When defaults do occur, the financing company is able to contact the surety bond company immediately to cancel the bond. This ensures that bond coverage is only in effect when payment has been made which protects all parties involved.

 
surety bond cost



Our Surety Bond Financing Process

 

 

Step #1: Generate FREE surety bond quotes in our OneClick software.

 

Step #2: Request financing via phone (866) 722-9239 or email info@suretysolutionsllc.com

 

Step #3: Review the surety bond financing Terms which are as follows…

 

Fidelity Bonds/Professional Liability Financing

  • Annual Percentage Rate: 14 - 19%
  • Down Payment:  30 - 35%
  • Finance Charge
  • 6 Payments Monthly
 
Standard Surety Bond Financing (Only available if the surety bond cost is $1,000 or more)
  • Annual Percentage Rate: 14 - 19%
  • Down Payment:  30 - 35%
  • Finance Charge
  • 6 Payments Monthly

 

Step #4: Review, Sign and Return the Premium Financing Agreement (PFA), payment schedule, and the first invoice with payment with your down payment (30 - 35% of the bond premium) to Surety Solutions, LLC.

 

Step #5: Continue to pay your bond premium payments in monthly installments over a 6 month period to the finance company. 

 

 

 

Do You Need Surety Bond Financing?

 

Call Today (866) 722-9239 to discuss your Surety Bond Cost or premium financing needs.

Learn About Financing Your Bond


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