A couple of times each week we speak with a new service provider that wishes to obtain their bond account established for the very first time. Here’s how it always goes:
Contractor: We want to pursue bound jobs yet we have actually never had bonds before. What’s included?
Bond Expert: OKAY Hi! That am I talking with?
Professional: Uh, I’m Humphrey.
Bond Expert: Great Humphrey, can we start by asking you a few inquiries? What is the dimension and also nature of the job you mean to go after?
Situation # 1 (Pursuing agreements as much as $350,000).
Professional: We have done domestic and also light commercial job. We wish to pursue basic building and construction contracts up to regarding $250,000.
Bond Expert: Great! Tell me the possession and framework of your company.
Professional: The business is an LLC owned by me and my partner Bogart.
Bond Professional: Are you both wed?
Specialist: Yes, yet not to every other.
Bond Expert: We have an extremely simple program that might be an ideal starting factor for you. To be eligible, the owners as well as partners should have excellent individual credit history records. Are the reports positive?
Bond Professional: There are some other standards. As an example, the program can not be used for long-term contracts or hard/ special building and construction. Demands to be plain vanilla. The good thing is that no economic declarations or other paperwork is required, just a straightforward one page app. If this program fits your requirements, you’ll never ever locate anything much easier or faster!
Bond Specialist: Provide me your e-mail address and we’ll send you the one web page application. We can possibly get you pre-qualified within 24 hours!
Situation # 2 (Going after agreements in excess of $350,000, or for applicants with low credit rating).
Bond Professional: We have an outstanding group of bonding business, as well as also offer exclusive ability not offered from other sources. We discover that most service providers are able to get approved for bonding if their account is created correctly. That’s where our experience (considering that 1972!) comes into play.
Professional: What details will be required?
Bond Specialist: Obtaining approved for bonding is like obtaining a bank loan. The very same sort of monetary and background information is needed. Your connection with the surety resembles financial as well as you promise to shield the surety from loss, much like signing a promissory note with a lending institution. That’s why surety bonds are not insurance policies.
Specialist: OK what’s the following action as well as just how much does it cost?
Bond Professional: We do not bill for establishing your account! We’ll send you an e-mail with a list of things that are required. Collect as much as you can and also send out over so we can begin. The process generally takes a week or two. Find more information by clicking here: contractorbond.org – California