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Bad credit is so often the black cloud that looms over you for years and years, stopping you from making moves in both your personal and professional life. As a contractor looking to bid on new construction projects, having bad credit can often stop you from so many things including getting funding or getting approved for the required bonds. The Surety Place specializes in helping contractors with bad credit get approved for performance bonds so that they have the opportunity to grow their business. Sometimes unexpected things happen that we have no control over and those incidents can have a negative impact on our credit score. While it may seem impossible, getting approved for a performance bond with bad credit is possible. Extra steps are required during the approval and underwriting process for candidates with lower credit scores. The surety agency you work with will need to verify that while your credit suffers, your other financials are well established and your business is prosperous. Below you will find the different steps to obtaining a performance bond with bad credit.
If you currently have a low credit score, it is important to work with a high-risk surety agency that has the means and programs to help you get approved. The Surety Place works directly with the SBA Bond Guarantee Program which was designed to help contractors with poor credit or less established contractors obtain the performance bonds necessary to grow their business. Working with a high-risk surety agency can help tremendously when it comes to getting approved for a performance bond with bad credit. The Surety Place has been named the #1 Surety Agency by the SBA, writing bonds year-round for the bond guarantee program and helping struggling contractors grow their business when other agencies have turned them down. It is important to know that there are designated programs created to help small businesses grow, when one surety agency turns you down, keep trying and find an agency with the skills and bandwidth to get you approved! If you have been denied a performance bond before, click here!
We understand that bankruptcies and poor credit can and do play a major role in the surety bond approval process. Some agencies are able to use cash, irrevocable letters of credit from a bank, or real estate to help secure a performance bond for a contractor in lieu of a high credit score. To learn more about this and how The Surety Place can help you get approved for a performance bond with bad credit, click here.
Because contractors with a poor credit score are seen as a high risk, some sureties will approve a performance bond for a contractor so long as a 3rd party administrator is in charge of managing and distributing all funds within the bonded project’s scope. This verifies that the project is funded appropriately and all subcontractors and suppliers will be paid out accordingly.
The Surety Place is a leading national surety agency that specializes in performance bonds. We have the authority to underwrite bonds in all 50 states and have special programs set in place to help contractors get approved for performance bonds with bad credit. Learn your options today and let The Surety Place help you grow your business in 2021.