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How to get bonds with bad credit?
We get it, life happens and sometimes the unfortunate occurs with our finances, causing bad credit to be nearly inevitable. BUT…we are here to tell you that bad credit doesn’t have to be the detriment to your business. Bonds are one of the essential components to starting or running a business and bad credit can cause you to be ineligible for obtaining a bond…at most sureties that is. But here at The Surety Place, we underwrite hard to place bonds on a regular basis. We have specialty programs for bonds for bad credit applicants. Running a business can be hard, and if you have been through difficult financial situations recently, we want to help you get back on your feet by getting you whatever bond you need in any of the 50 states. No matter how big or small of a bond you need, our team can help you get it. If you are a credit challenged principal looking for a specialty program to help you obtain the bonds necessary to run your business, The Surety Place is your solution.
FAQs about Bonds For Bad Credit
How does a bond for bad credit work?A surety agent will need to decide the "risk" factor of working with a principal with bad credit or poor financial rapport, which will help determine which specialty program best fits his/her personal and business needs, as well as the premium for the bond itself. The higher the risk, the higher the premium, but the specialty programs that Surety Place has set in place are specifically for hard to place bonds, aka, bonds for bad credit.
What is considered bad credit in business?Credit scores can be broken down as follows:
Excellent: 720 to 850
The ranges above may vary slightly depending on various entities or creditors, but generally this is the consensus of credit score breakdown.
What candidate would be considered "hard to place" in terms of obtaining a bond?Typically anyone with bad credit history, financial hardship in recent years of business, bankruptcy, or someone who has back-payments on child support would all be candidates for a hard to place bond. This is due to the risk factor that the surety would have to take on knowing the financial history of the principal. If you aren't sure whether or not you would be considered a risk, call The Surety Place today and one of our team members would be more than happy to answer your questions and start your bond process. Don't let bad credit stop you from growing your business, we are one of the few sureties with specialty programs specific to hard to place bonds.
Will bad credit affect the amount and premium of the bond I want?Yes, having less than a "good" credit score can affect the amount for an approved bond as well as the premium you are responsible for paying. This goes back to our previous statement concerning the risk factor that a surety agent takes on when underwriting a bond for a hard to place principal. When you have bad credit but need approval for a bond, sometimes the premium can be much higher and due to your financial struggles, you may not be able to pay the amount in full. This is why some specialty programs allow you to pay the bond amount in increments. Ask The Surety Place about all of your bad credit bond options.
Request your bond for bad credit today!
Is Bad Credit Stopping You?
The reason bad credit bonds are called “hard to place” is because sureties have to take into consideration your financial and business history and see what kind of risk factor they are taking by backing your bond. A hard to place bond can leave a surety in fear of a principal having claims made against the bond and not paying for them. In our industry anything below a 650 FICO score is considered bad credit and your bond needs would be put into a hard to place category, meaning our underwriters must look into substandard markets to get you the best priced bond possible for your personal situation.
The Application Process
When starting the process for obtaining a bond when you have bad credit, financial hardship, unpaid tax lien, civil disputes, or even just not enough history in your specific line of work, it is important to be honest with your surety and supply all documentation needed. From finances to any previous business issues, the surety will want full disclosure into your business so we can decide which program is best fit for your and how to help you get the right bond at the right price. Also, know that if your credit score improves overtime while you have a bond with us, it is possible that your rates could decrease. Another factor that could help with a lower rate is getting a co-signer on your bond who has an excellent credit score. Like we have said before, the options for bonds with bad credit are endless but you need a team of great surety agents to help you with the application process to ensure you get the best bond rate possible. The Surety Place is that bond agency. We are here to serve you; we want to help your business grow and succeed.
A National Surety With A Local Feel
The Surety Place, previously known as Surety Placement Services, was founded in 2002 with a goal to bring innovation and a high level of service the industry had not yet seen. We are located in Scottsdale, AZ and have recently been named one of the top Surety Agents in the Southwest region by the SBA for the number of bonds we wrote utilizing the small business administration surety bond guarantee program. We can write any bond in any of the 50 states; we may have big capabilities, but we make sure that we always treat you like a local in our community.
We know that when trying to obtain a bond with bad credit, the process can be daunting but it doesn’t have to be when you choose The Surety Place. Our specialty programs are built for hard to place bonds. We make the process easy for you. As an industry leader from the start, we are a people first surety bond partner that you can trust, offering access to agents and businesses to achieve the right solution at the right time.
Your Bond Needs Are Always Heard
We establish a relationship with you in order to truly understand your business focus whether large or small and no matter how difficult. As one of the only true specialists within the industry we supply access, partnerships and specialty programs with numerous “A” rated sureties across the nation. We are here to help you service all your bonding needs with no appointments or contracts necessary. Bad credit bonds may not be ideal but they can be crucial for certain business owners trying to grow and get out of financial hardship, which is why we ask that you trust in us to do the hard work for you, get you the bonds required of you to run your business successfully.
Because of our industry knowledge and expertise coupled with our ever increasing specialty programs, we have the unique ability to write your bonds when no one else can, and because of our relationship with you we will stand behind you in support to achieve your agency or business objectives.
Over 40 Years of Combined Surety Experience
Our dedicated account managers are highly trained underwriters who provide our agents and clients a tailored bonding solution for their individual or corporate needs. In today’s marketplace, surety access can be limited; but with Surety Place as your partner, you’ll find the white-glove service you have been looking for.
No matter how complicated your bond may be, your personal credit, or the size bond you need, Surety Place is built to find an answer. Poor credit, financial hardship, fast growth, or just getting your company off the ground, we the have options you need.
We understand business. We also understand how difficult it can be when something that seems like such a small piece of the puzzle gets in the way of closing the deal or moving forward. We take that pressure off your mind so YOU can get back to work.
Need help growing your bond department?
At The Surety Place, we pride ourselves in our customer service! If you have any questions regarding your bonds for bad credit, give us a call.