Surety Bond Premium Financing

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Surety Bonds.com explains Premium Financing agreements for surety bonds.

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Surety Bond Premium Financing

  1. 1. &gt; &gt; What is Premium Financing?<br />
  2. 2. Premium Financing is . . .<br />A financing option for bond purchasers to cover the cost of a surety bond.<br />Premium Financing is a Loan.<br />
  3. 3. Premium Financing is . . . <br />An Agreement between 3 Parties.<br /> - Bond Purchaser (You)<br /> - Insurance Company (Writing Bond)<br /> - Finance Company (Doing Loan)<br />
  4. 4. Financing Surety Bonds is Unique<br />Only available for Cancelable Bonds.<br />Does your bond qualify?<br /> - Varies greatly. Check bond form.<br /> - Ask your agent or Inquire Here.<br />
  5. 5. Financing Surety Bonds is Unique<br />Financing co. will require 25% down.<br />First 2 months payments up front.<br />The rest is financed at 10-15% APR over the term of the bond (~1 year).<br />
  6. 6. Let’s Do an Example<br />
  7. 7. Let’s Do an Example<br />
  8. 8. Let’s Do an Example<br />What you pay:<br />$2,500 + Months 1 and 2 payments<br />You will make recurring monthly payments on the remaining balance for the term of the bond.<br />
  9. 9. Why Premium Financing?<br />
  10. 10. Why Premium Financing?<br />Because financing is issued only on Cancelable Bonds, there is no risk of default.<br />
  11. 11. Our Takeaways<br />Premium Financing is a Loan.<br />Only done on Cancelable Bonds.<br />25% Down + First 2 Months<br />
  12. 12. Produced by the SuretyBonds.com Education Center<br />www.suretybonds.com/edu<br />www.suretybonds.com/blog<br />

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