How Much Does a Surety Bond Cost?
We must first understand what a surety bond does as well as the factors that are involved that will determine the rate as well as obtaining a surety bond approval. The surety company will evaluate your credit, experience, and financials. The process is very similar to apply for a business loan. Rates vary on a multitude of conditions such as which state is it for, what type of surety bond is needed, what is the financial outlook for the company or individual, how much experience does the business have and of course, which surety company is writing it. Most companies are looking for a credit score above a 670 with no public records, collections, or slow pays. They also review your business financials to make sure that your company has a positive net income and worth. The surety company requires that your financial equity be at least five times the bond amount. Therefore, if you are applying for a $50,000 Surety bond the surety is looking for a net worth above $200,000. Keep in mind this
