Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How Much Does a Surety Bond Cost?


Published on

We answer "How Much Does a Surety Bond Cost?"

Published in: Economy & Finance, Business
  • Login to see the comments

How Much Does a Surety Bond Cost?

  1. 1. > > How Much does a Surety Bond Cost?<br />
  2. 2. Well, it depends . . . <br />There are thousands of types of surety bonds.<br />We need to narrow things down to give you a proper answer . . .<br />
  3. 3. What Will Affect the Costs?<br />General guidelines affecting Surety Bond cost include:<br /><ul><li> Type of Bond
  4. 4. Experience in the Industry
  5. 5. Credit History</li></li></ul><li>Looking for a Bail Bond?<br />“Bail Bonds” – surety bond related to a criminal legal incident<br />Not what we do at<br />You will pay a set fee to a bail bond company, and may have to post collateral.<br />
  6. 6. Need a Bail Bond?<br />Try a search for your local area + <br />“Bail Bonds Company”.<br />
  7. 7. Small Businesses Owners<br />Again, the cost of your surety bond will depend:<br /><ul><li> Type of Bond
  8. 8. Location
  9. 9. Credit History</li></li></ul><li>Why Does Credit History Matter?<br />This is a game of risk mitigation.<br />
  10. 10. Commercial Surety Bonds<br /><ul><li>Mortgage Brokers -Tax Collectors
  11. 11. Insurance Brokers -Notaries
  12. 12. Car Dealerships -Collection Agencies
  13. 13. Medical Providers -General Contractors
  14. 14. Travel Agents -and more . . .
  15. 15. Home Cleaners
  16. 16. Janitors</li></li></ul><li>Common Premium Costs<br />Most commercial bonds will carry a premium cost of 1% up to 15%. <br />If you’re getting a $50,000 bond, you’ll pay anywhere from $500 to $7,500.<br />
  17. 17. Why the Large Gap in Costs?<br />There are two different markets:<br />Standard<br />High-Risk<br />“Standard” is cheaper.<br />
  18. 18. I want to be “Standard” then!<br />To qualify for Standard premiums, you’ll need to meet some criteria.<br />Been in Business > 1 year.<br />Credit score > 650.<br />No prior surety bond claims.<br />3+ years experience in your industry.<br />Personal net worth 1-3x the bond amount.<br />
  19. 19. Non-Standard or “High Risk” <br />You can still obtain a surety bond if you do not meet the “Standard” criteria.<br />Have no prior surety bond claims.<br />Are a US Citizen.<br />
  20. 20. Our Takeaways<br />Talk to a Bonding Agency, like<br />Price will vary greatly based on situation.<br />Standard and Non-Standard surety bonds are available.<br />
  21. 21. Produced by the Education Center<br /><br /><br />