As a business looking to operate in the United States, you might be required to acquire surety bonds for licenses. The costs of surety bonds can be a serious concern for you. We at BondPro provide a brief guide in determining the costs of your surety bonds and some other relevant concerns:
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As a small business starting out in a competitive landscape, your initial goal is to make sure you start making profits as soon as possible. However, you also want to give your customers peace of mind—an assurance that they are doing business with a reliable source.
Whether you are a construction contractor or a real-estate agent, you know that there are quite a lot of hassles when obtaining permits, licenses or legal documents. On top of all this, there are surety bonds that have become a mandatory part of many operations. They not only make your customers trust you more, but also ensure that they do not suffer from any financial consequences.
One certain way for you to get the bonding process started and moving along quickly, is to be prepared to fulfill its requirements. Know this: Surety Bonds are not insurance; although issued by an insurance company, bonds are underwritten as a financial obligation. When you seek out the services of a surety bond agent, and prepare the documents they require, a part of your role in the process involves providing financial information from your business operations and personal financial statements from the business owner(s).
People are quite skeptic about high-investment purchases. Property, insurance programs, vehicles – these are long-term contributions. A buyer needs assurance that the purchase is in their best interest. So it would not come as a surprise if we told you that that your reputation as an automobile dealer has to be well-founded to instill trust in potential customers.
You have just been asked to acquire a surety bond for a project and are left wondering ‘how do I do that?’ If you can relate to this, you are at the right place. At BondPro Inc, we get hundreds of emails every week from concerned contractors and project supervisors wondering how surety bonds work.
In most cases where it’s been days before you receive any quotes for surety bonds, the delay might be due to manual reviews. All applications naturally go through a review process before they can be approved. If your application goes for a manual review, it means that when your application was input into the computer, it wanted a second opinion.
Even though there are plenty of types, surety bond is an assuring agreement between three parties. The parties are the principal (bond applicant), the obligee (project owner/client) and the surety (bond issuer). Simply put, surety bonds protect obligees from cases of fraud, penalties and abuse.