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.

Surety Bond Premium Financing

7,416 views

Published on

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

  • Be the first to comment

  • Be the first to like this

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 />

×