Surety bonds are required if one is interested in bidding on public construction contracts or many private contracts. The business seeking surety should make sure it chooses the right bonding agency. Some of the attributes to look for in a bonding agency include:
Expertise: A good bonding agency is well aware of the decision makers in the market. What they need and how they expect things. The agency must have enough experience to know how to best present the surety needs on its client’s behalf.
Simplicity: The application process should be simple enough so that small businesses can also apply without any hassle. It should be fast. Your requests should not get lost in a stack of applications.
Reputation: The reputation of an agency depends upon its relationships in the surety market. A bonding agency who has built strong relationships over the course of its working years can also assist businesses with struggling to obtain bond capacity. It has access to surety providers of all size and thus the ability to negotiate for rates that fit for all size businesses.
Customer care: Staff and personnel are other attributes that determine the ethics of a company. Customer care service needs to be top notch.
Choose the agency that is as hard-working as you are, because all it takes is hard work, good planning and a touch of luck to prosper for any business.
This infographic is intended to provide information about Surety Bonds, how to maximize bonding capacity and what to look for in a surety agent. The infographic also talks about what factors to consider before a Surety underwrites its bonds.
It is essential for contractors to know their bonding capability as it determines the projects they are able to pursue. A surety bond company will not issue bonds to any contractor with unstable finances. Contractors need to constantly evaluate and understand their financial status including balance sheet, cash flow, bank relationships and capital. The year-end financial statements present a more precise financial standing of a company. A certified public accountant (CPA) can help any company formulate statements and tax planning. Contractors should work alongside them and with their bond agent to grow and succeed.
A Surety Bond company rigorously checks the financial background of a company to determine whether the company is stable or not. It closely examines the net worth, long-term debt , credit and contingent liabilities before issuing Surety Bonds.
It is imperative for a contractor to maintain a clean reputation in the market in order to qualify for surety from a reputable surety company.
Go through the below infographic for more information.
Nielson and Hoover is a renowned bonding agency, facilitating the nationwide procurement & delivery of surety bonds. It is one place with the ability to fulfill the bond needs of a business’s surety needs whether big or small.
They deal in performance bonds, payment bonds, and maintenance bonds. They are also experts in commercial bonds, license and permit bonds, fidelity bonds and more. The experience and knowledge of NHC ensure you get the right surety solutions for your business. The main surety products available at NHC are contract and commercial surety bonds. Due to well-developed and maintained relationships with the top surety providers over the years, it has become possible for NHC to provide customized surety solutions for well established as well as the businesses trying to supplement their capacities. Some of the attributes of NHC are listed below.
Provide multiple ways of requesting a surety, including by email, fax, online or by online app. The application process is simple, easy to complete and quick.
NHC offers the best rates by being the leading surety underwriter by volume and understanding the risk of the client and obligation.
Even companies with weak financial standing can find a surety solution to fit their needs.
They have a huge number of professionals and staff taking care of operations, along with the best understanding of the construction business.
When searching for the best way to get your Surety Bond, consider all the aspects and then choose a bonding agent.
The bonds which do not fit under contract are termed as commercial bonds. Six of these commercial surety products are described below.
License & Permit Bonds: These bonds are needed in order to carry out a business activity that needs a permit from the state or federal government. These bonds act as the guarantee that the Principal will act in accordance with the rules and regulations of the state government. Businesses such as motor vehicle dealers, employment agencies, and liquor dealers need these bonds to get a permit.
Judicial Bonds: These bonds are issued to make sure the Principal performs in accordance with the orders of the judiciary. These bonds are also known as probate or fiduciary bonds. These bonds are purchased by administrators, guardians, trustees and will executors. The executor has to act ethically according to the wishes of the deceased, if not then this bond will compensate the affected people.
Miscellaneous Bonds: They are bought to support distinctive business needs. Lost securities, lease, wage and welfare benefit bonds are some of the examples of Miscellaneous Bonds.
Subdivision Bonds: It is a guarantee that the Principal will construct the improvements such as sewers, gutters and streets in a city or a state.
Federal Non-Contract Bonds: These bonds are required by the federal government such as Medicare and alcoholic beverages.
Public official bonds: These bonds are bought to check that public officials will fulfill their services as expected. The whole purpose is to guard the taxpaying citizens and reimburse them in case public officials are involved in any misconduct.