SURETY SOLUTIONS BLOG

Do You Offer Surety Bond Payment Plans?

By Duke Revard on Feb 24, 2017 7:18:00 AM in

Cost of Surety Bonds

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Short on time? Get a free financing quote.  


Surety bond costs can vary widely from bond to bond. Some bonds are as inexpensive as the 4-year Kentucky Notary Bond which you can get for $30. That is literally 2 cents a day spread over the lifetime of the surety bond.

 

The price for others can add up to a lot more than that. In fact, many small business owners find themselves with a surety bond costs that exceed their current cash on hand.

 

This is when the next logical questions come: “Can I make payments?” or “Do you offer surety bond financing?” or "Can I be put on a payment plan?"


Do You Offer Surety Bond Payment Plans?

 

The quick and easy answer is YES. We do offer surety bond premium financing.

 

We get it. You are small business owner and cash is king and it is not always good to have all your cash tied up in your surety bond.

However, you need a bond when the government says you need a bond to move forward with licensure or some other contractual agreement. If this is your situation, surety bond financing can be a great option.

 

Can I Finance Any Surety Bond?

 

The short answer is no.

 

Surety bond carriers often have a threshold for financing that hovers around $1,000.

This means if your bond premium is more than $1,000, you might be able to get financing. If your bond premium is less than $1,000, you most likely will not be able to get financing. 

It is also important to note that premium financing is only available on surety bonds that are able to be cancelled. This protects the surety bond company in the event that you fail to make your payments on the premium installment.

 

Setting up a Surety Bond Payment Plan

 

Surety bond financing breaks your premium payments up into smaller, more manageable payments you can spread out over time.

There are essentially three parties in the financing agreement:

  • you (the person who needs bond financing)
  • the finance company and
  • the surety bond company

If you fail to pay one of your installments, the financing company is able to contact the surety bond company immediately to cancel the bond. This ensures that bond coverage is only in effect when payment has been made which protects all parties involved.

 

 Our Surety Bond Financing Process

 

Step #1: Generate FREE surety bond quotes online

 

Step #2: Request financing via phone (866) 722-9239 or email info@suretysolutionsllc.com

 

Step #3: Review the surety bond financing terms which are as follows…

 

Fidelity Bonds/Professional Liability Financing

  • Annual Percentage Rate: 14 - 19%
  • Down Payment:  30 - 35% 
  • Finance Charge
  • 6 Payments Monthly
 
Standard Surety Bond Financing (Only available if the surety bond cost is $1,000 or more)
  • Annual Percentage Rate: 14 - 19%
  • Down Payment:  30 - 35%
  • Finance Charge
  • 6 Payments Monthly

 

Step #4: Review, Sign and Return the Premium Financing Agreement (PFA), payment schedule, and the first invoice with payment with your down payment (30 - 35% of the bond premium) to Surety Solutions, LLC.

 

Step #5: Continue to pay your bond payments in monthly installments over a 6 month period to the finance company. 

 

 

Do You Need Surety Bond Financing?

 

Call Today (866) 722-9239 to discuss your surety bond Cost or premium financing needs.

Get a Free Financing Quote


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