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Surety Bond Blog
So you are told you need a surety bond. You want to get up and running as fast as possible right? Today we are going to review what to look for in a bond agency and what you can do personally in order to get your surety bond fast!
Choosing the right agency:
The single most important thing you can do when in a time crunch is to choose the right bond agency to turn around your bond quickly. Obviously the rates they have to offer are important, but here are some other things you will want to consider in order to get your bond fast.
1. Are they brokering your business? – It is very common for bond agencies (especially smaller ones) to broker their business to a larger agency with access to more markets. The problem is that you are adding another middle man into the equation. This generally means a slower response time and often a higher rate.
2. Do they issue the bonds out of their office? – Many agencies have power of attorney with the carriers they work with, allowing them to issue the bonds directly out of the agents office. This allows for same day turnaround at times. If the answer to question #1 is “yes”, then you can almost be certain that they do no have the authority to issue bonds out their office.
3. What is their response time to your inquiries? – If an agency isn’t getting back to you within 24 hours with a question you have prior to paying them, there is little 
chance they will act quickly after you pay them.
4. Do they allow you to apply online? – An agency that still does not take applications online is likely not very technologically automated, which can make them slower to respond to the needs of their clients in comparison to the competition.
5. Ask your agent – Be sure to ask your agent what the average turnaround time is for an approval and for issuance. Some agents will make exaggerated promises of turnaround time, so you may want to request their response by email so you have it in writing.
Click here to apply with JW Surety Bonds!
What you can do to speed up the process:
Simply choosing the right agent doesn’t get you our of the woods yet. You will need to do some things on your end to make sure your original bond is in your hands as fast as possible.
1. Send everything your agent requests in a timely fashion – If your agent requests something of you, be sure to get it to them quickly. A good agent will not ask you to send anything unnecessarily. Most of the time, your application will not be submitted anywhere until you agent has everything they requested. Not sending your agent what they need could result in an extremely high rate or no response at all.
2. Have an open line of communication – Make sure you keep in close contact with your agent. You don’t want to call them unnecessarily and waste their time, but be sure that you are both on the same page. If you fax or email documents to your agent, it is a good idea to confirm receipt of them. Sometimes faxes and emails do not go through properly, which could cause a big delay in your approval or issuance.
3. Pay for overnight delivery – If getting your bond fast is extremely important to you then do not send any payment or original agreements by regular mail. You might be surprised to find out how often the U.S. Post Office loses envelopes. Situations can become even more hairy when cashiers checks are lost. Pay the extra $15-20 and make sure you send what is needed overnight w/ a tracking number from a reliable service like FedEx or UPS.
Comments (15)
Category: Auto Dealer Bonds, Bid Bonds, Commercial Bonds, Contract Bonds, Contractor License Bonds, Court Bonds, General Bonding, Misc. Commerical Bonds, Money Transmitter Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Performance Bonds, Subdivision Bonds, Telephone Solicitor Bonds, Title Agency Bonds, Wage & Welfare Bonds
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HI MY NAME IS CODY I LIVE IN MS AND I WANT TO OPEN A SMALL BUSINESS ,I WANT TO GET MY DEALER LICENSE BUT THEY ARE ASKING FOR A 10-25 THOUSAND BOND .LIKE I TOLD YOU IM GOING TO OPEN I DONT HAVE SO MUCH MONEY TO GET IT. I HAVE THE MONEY FOR INSURANCE FOR THE PLATES FOR OTHER THINGS THAT YOU HAVE TO PAY AND I ALSO HAVE A BANK ACOUNT BUT NOT WITH THAT MONEY IS THERE ANY WAY THAT YOU CAN HELP TO GET IT OR JUST WITH SOME INFORMATION
Surety bond premiums only require a percentage of the bond amount. You are not required to post the full amount. Typically, commercial license bond premiums are 1-3% of the bond amount. High risk candidates can see rates closer to 15%.
You can get a free quote to see what rate you qualify for at: Commercial Online Application
I purchased a ATV dealership I am50% owner partner is in critical condition they accepting my offer to purchase their 50% in the buisness and now we have been notified we have an exspired dealer bond , we tried to renew bond with my name on it and they declined me for unknown reasons,what do I do ?
Joy,
We have programs that should be able to get you approved without problem.
You can get started by applying online for a free quote.
I am in bankruptcy chapter 7. Can I get car dealer bond from someone?
Absolutely. We can even approve you instantly online. You can apply online at: https://www.jwsuretybonds.com/protools.htm
Summitted claim to surety bond company for used car dealer that stole my money and never gave me title.How long is average wait time for settlement?
That depends on numerous factors…
-The surety claims dept.
-Whether or not other claims have been filed
-The amount of liability left on the bond if others have already been paid
-etc.
It's too hard to say for all scenarios. I would start by contacting the state to get the ball rolling. From there, the surety claims rep will contact you and you can ask them an approx time range.
Can you tell me whether or not it's even possible for a brand new entity to obtain a performance and payment bond? It doesn't seem like it. We're new so how can we have 3 years financials and performance history. All we have is 650 credit and I was told that's not good enough. I'm elevating homes in Louisiana, your answers are appreciated.
John,
Yes it is possible. However, that is dependent on several factors. Many sureties will approve on personal credit for contract bonds for two or three hundred thousand.
What is the size of your contract? What sureties has your request been sent to?
I have a credit score of about 600…but not carrying any debt and all negative credit inquiries paid off. How likely would be to qualify for a surety bond? I am looking to bring about 30k to the table for my business which has an expected statrup cost of 15k. The bond I will need is 25k.
Thanks
Alan,
Getting you approved shouldn't be a problem. We can get just about anyone approved when it comes to commercial surety bonds.
So as long as you don’t need a contract bond, we can definitely help you.
sounds good. I'll be in touch once I have all my ducks in line.
Oh my! I like this a lot! Very clever!
Thanks for the comment Delmer!