I can’t tell you how many times I will send a client a written approval only to hear, “I can get the bond for half that price!” Let me start off by saying, “actually no you can’t”.
Many surety bond agencies will tell their clients the best possible rate, just to get the business. Unfortantly, these rates are truly only for principals with the best credit and or business financials. It is a common practice, but time and time again the same customers that told me I was ripping them off come back after finding out they were never actually approved at that rate. The real kicker is when the client thinks they are approved at a great rate only to find out that the agency can’t even get them the bond due to bad credit.
So beware, when an agent claims he/she can get the bond for you at a great rate, it is usually to good to be true unless your finances can support the risk at the given rate.
How to protect yourself:
- Be sure to ask if you are approved at that rate
- Ask for the approval/quote in writing
- Check your credit prior to applying (anything below a 670 is questionable)