How Much Does a Surety Bond Cost?
Channel: Lance Surety Bond Associates, Inc.
Date: 02/01/2015

Source: https://bit.ly/3D398fk

Description:
When you are told you need to post a surety bond you may wonder how much it will cost. 

Luckily, the surety bond cost is not the full amount of a surety bond. Surety bonds are paid in annual premiums, which is only a percentage of their total amount. 

So how to find out how much the surety bond will cost you?

To find that out, you need to apply for a quote. If you go to Lance Surety Bonds’ website (https://bit.ly/3qt8iUd), you can receive a quote in just a few minutes by entering basic information about your business and the type of bond required. 
Quotes are based primarily on the business owner’s personal credit score, which is the most important factor when determining the surety bond cost.

Credit score matters, because bond companies are risk-averse when underwriting surety bonds, since they will be financially responsible if there is a surety bond claim. So, they estimate how likely you are to trigger a claim based on your credit history, just like banks do when you apply for a loan. If your credit score is poor, sureties make up for the risk by raising your annual premium.

- Applicants with good credit standing typically pay between 1 and 3 percent of the total bond amount. 
- Applicants with damaged credit can pay up to 15 percent. 
In the case of a $50,000 bond, you may pay between $500 and $1,500 per year with good credit, and between $2,000 and $7,500 with bad credit.

But there are ways to reduce bond costs!

If you can provide strong personal or business financial statements, these can have a positive effect. Also, the more industry experience you have, the better. These factors will be taken into account each year anew when your bond is up for renewal.  

Choosing the right surety bond agency can have a tremendous impact on the price of a bond, as well as on your chances of obtaining one. 
Since surety bonds companies don’t work directly with the public, your bond will be underwritten with the help of a bonding agency such as Lance Surety Bonds. We have a large network of partnering sureties, so even if one of our bond providers declines your application, or offers too high of a price, we will shop around to find you the best deal. 

Additional resources:
1. Need more info on the bonding process? See: https://bit.ly/3LcFZRX
2. Want to know more about picking the right surety bond company? Visit: https://bit.ly/3qqlrgI
3. To get a free surety bond quote, go to: https://bit.ly/3qt8iUd
4. Wondering how to lower your bond cost? Check out these tips: https://bit.ly/3ww3e5p
5. Have more questions? Check out these Surety Bonds Frequently Asked Questions: https://bit.ly/3wDgqVQ