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Yes, we have access to carriers that your current broker has not approached and we can often increase your surety credit limits.
Yes, absolutely. And since access to bonding is often the life-blood of a company, you should definitely have a backup in place.
Yes, the transfer over to Direct Surety is seamless.
The cost varies based on the financial strength of your company and the size of the bond you need. The bond is usually priced using a flat rate ranging from 2% to 3% of the contract amount, or using multiple rates that together range, on average, from 2.5% to 1% of the contract amount.
For bonds up to $500K, your company can qualify for surety credit based upon the personal credit score of the owner. For larger bonds, surety credit is based upon your company’s financial statements, more specifically, the working capital that is computed from within. Since Direct Surety has former underwriters on staff, we can provide you with the exact formula.
The amount of surety credit your company qualifies for is based on the type and quality of the financial information you can produce. A good personal FICO score of the owner can get you a bond for projects up to $500K, an in-house financial statement can get you bonds up to $1MM, a CPA-compiled financial statement can get you bonds up to $2-$3MM, a CPA reviewed financial statement can get you bonds well above $3MM, and a CPA audited statement is sometimes required for mega projects.