Surety Bond Premium Financing

> > What is Premium Financing?

Premium Financing is . . .
A financing option for bond purchasers to cover the cost of a surety bond.
Premium Financing is a Loan.

Premium Financing is . . .
An Agreement between 3 Parties.
- Bond Purchaser (You)
- Insurance Company (Writing Bond)
- Finance Company (Doing Loan)

Financing Surety Bonds is Unique
Only available for Cancelable Bonds.
Does your bond qualify?
- Varies greatly. Check bond form.
- Ask your agent or Inquire Here.

Financing Surety Bonds is Unique
Financing co. will require 25% down.
First 2 months payments up front.
The rest is financed at 10-15% APR over the term of the bond (~1 year).

Let’s Do an Example

Let’s Do an Example
What you pay:
$2,500 + Months 1 and 2 payments
You will make recurring monthly payments on the remaining balance for the term of the bond.

Why Premium Financing?

Why Premium Financing?
Because financing is issued only on Cancelable Bonds, there is no risk of default.

Our Takeaways
Premium Financing is a Loan.
Only done on Cancelable Bonds.
25% Down + First 2 Months

Produced by the SuretyBonds.com Education Center
www.suretybonds.com/edu
www.suretybonds.com/blog

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Surety Bond Premium Financing

by Nathaniel Broughton

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Surety Bond Premium Financing Webinar Transcript