What is a surety bond?
A surety bond is generally a three-party agreement involving the principal, the obligee requiring the bond, and the surety company backing the obligation. The exact requirement depends on the bond type and the governing contract, court, licensing authority, or other entity.
Typical application process
In many cases, applicants complete an application, provide a copy of the bond requirement, and authorize a credit review. Contract and higher-risk bonds may require additional business and financial information.
How long does it take?
Simple license and permit applications may move quickly, while larger or more complex bonds can take longer. Timing depends on the bond type, amount, underwriting requirements, and completeness of the application.
What about bad credit?
Credit is often one factor, but it may not be the only factor. Underwriters may also consider experience, financial strength, collateral, indemnity, and the specific obligation. Approval, pricing, and terms are not guaranteed.
Why work with a bond specialist?
A specialist can help identify the correct bond, explain the information required, and present the application to appropriate markets.