Axcess Surety was founded by Surety Bond Experts with the belief that surety credit should be accessible to those in all circumstances. Our people are industry leaders in surety bonding. We have access to industry leading surety bond companies, programs and tools to unlock surety for all. We hope you reach out to us first but many of our clients have been turned down by other brokers who claim to have surety expertise. Whether its your first bond or you need a $50 million bond, contact us today to see how we can open doors to surety bonding!

Surety Bond Myth one:

I need two bonds, one for each state I am operating in. A broker told me that I could get a discount if I buy two bonds from them. This is not true what so ever, the surety would have more exposure and generally the rate can go up. When a broker tells you this they are probably charging a broker fee and are reducing the fee on the second bond. Now if the bond for the other state has a lower liability and the surety company has a lower filed rate it may be true. This is not the case 90% of the time.

A way to get a lower rate for your surety bond is if you buy your bond for multiple years than you would receive a discount for the additional years.

Surety Bond Myth two:

The bank told me that if I get a bond they would loan me the money The answer in 99% of the time is no. If a bank won't lend you the money you probably don't qualify for the loan. If you can't qualify for the loan you probably can't qualify for the surety bond. Now I am not telling you not to try to get a bond for a loan because you maybe one out of a million that may get it. The likely hood of getting it is slim to none. The surety a few years ago did do financial guarantee bonds, but the fall of Enron and a few other companies caused many sureties to go out of business. Since the fall of Enron surety companies have stopped securing loans.

Surety Bond Myth three:

The broker told me that they would not run credit. Unless it's a notary bond or maybe a defective title bond the surety is going to run credit. 99% of the time the surety will perform and review your credit. If you wanted a loan to extend credit from the bank wouldn't they run your credit? The same philosophy goes for the surety because they are extending a form of credit too.

Surety Bond Myth four:

I was told I can use this bond for every state. If you are referring to a state bond this is not true. Each state has their own bond form and surety bond regulations. If it is a for a federal bond like an ICC broker bond which is a federal bond then you could yes this for each state. Keep in mind just because you have a federal bond does not mean that the state does not require you to have a bond too.

Surety bond Myth five:

If I just get the bond the government will give me my license. The government will not let you get your license until you get the bond, but that does not mean that they will give you your license. You still must meet all of the obligee's requirements first. That includes a bond and other requirements such as zoning, background checks and sometimes educational requirements.

1) the Surety - the insurance company that will issue the bond and act as an intermediary between the Principal and the Obligee

More business, are applying for surety bonds, does this mean that the recession is over? In this last quarter surety applications went up for the first time in almost two years. This is a good sign for the economy, since bonds are required for new businesses as well as existing businesses. Construction bonds went up too showing that the construction industry is slowly coming out of a slump. Hopeful these trends will continue and America's economy prospers once more.

Who benefits from Bonds?

A surety bond is an unsecured loan in force to protect a third party or parties named the obligee. The State in most cases is acting as the obligee on behalf of its citizens. The state requires bonds to be drafted to protect the individuals or companies that transact business with the principal bond holder. Most professional regulated businesses are required to satisfy this requirement before they can obtain a license. Contractors, Car Dealers, Mortgage Brokers are all required to obtain bonds. In some states Sales tax bonds are required for every business. Surety bonds have been around for thousands of years, they are the oldest form of Insurance.

Where do you get Surety Bonds?

In order to obtain a bond the principal must first fill out an application with a Surety Company. The next step is to find a Surety Company that will write the risk. Make sure that the Surety is licensed and rated for the State you're applying for the bond in. Your best option is to apply for your Surety Bond with Surety Agents. Look for Surety Agents that are not tied down to one company.

Underwriting for Bonds

Applying for a surety bond is similar to applying for a credit card or a loan. Surety Bonds are underwritten like how a bank would underwrite a loan. The Surety reviews the client's credit, personal financials, business financials, and experience. If the principal has credit issues or if the financials do not meet the liquidity requirements the bond's rate will be increased.

I hope you enjoyed this article. If you want to lean more please let me know

Contractors, car dealers, and mortgage brokers are required to have this form of Insurance. Surety Bond types can be confusing you can learn more about Surety Bonds with future articles.

You must have this requirement before the obligee will issue you a license. Check your credit before applying for the bond so you can have ample time to fix any issues. Depending on what type you need you may be required to present a business financial, personal financial and a resume.

I hope you enjoyed this article keep posted because there will be more to come. If you want to lean more about this topic or anything else please let me know.

2) the Principal - the party responsible for the total and timely completion of the obligation established within the bond

Surety Bond Myth one:

I need two bonds, one for each state I am operating in. A broker told me that I could get a discount if I buy two bonds from them. This is not true what so ever, the surety would have more exposure and generally the rate can go up. When a broker tells you this they are probably charging a broker fee and are reducing the fee on the second bond. Now if the bond for the other state has a lower liability and the surety company has a lower filed rate it may be true. This is not the case 90% of the time.

A way to get a lower rate for your surety bond is if you buy your bond for multiple years than you would receive a discount for the additional years.

Surety Bond Myth two:

The bank told me that if I get a bond they would loan me the money The answer in 99% of the time is no. If a bank won't lend you the money you probably don't qualify for the loan. If you can't qualify for the loan you probably can't qualify for the surety bond. Now I am not telling you not to try to get a bond for a loan because you maybe one out of a million that may get it. The likely hood of getting it is slim to none. The surety a few years ago did do financial guarantee bonds, but the fall of Enron and a few other companies caused many sureties to go out of business. Since the fall of Enron surety companies have stopped securing loans.

Surety Bond Myth three:

The broker told me that they would not run credit. Unless it's a notary bond or maybe a defective title bond the surety is going to run credit. 99% of the time the surety will perform and review your credit. If you wanted a loan to extend credit from the bank wouldn't they run your credit? The same philosophy goes for the surety because they are extending a form of credit too.

Surety Bond Myth four:

I was told I can use this bond for every state. If you are referring to a state bond this is not true. Each state has their own bond form and surety bond regulations. If it is a for a federal bond like an ICC broker bond which is a federal bond then you could yes this for each state. Keep in mind just because you have a federal bond does not mean that the state does not require you to have a bond too.

Surety bond Myth five:

If I just get the bond the government will give me my license. The government will not let you get your license until you get the bond, but that does not mean that they will give you your license. You still must meet all of the obligee's requirements first. That includes a bond and other requirements such as zoning, background checks and sometimes educational requirements.

Even in today's world of economic uncertainty people still need to get things done. Unfortunately a lack of trust in the market can also lead to a generalized lack of trust of any outside source you might need to provide a service. It comes down to question of reliability and confidence: you need a service but need some guarantee of its completion. Exactly what could provide the surety you need?

What you need is a Surety Bond.

Understanding Surety bonds involves understanding some area specific jargon and facts you deserve to know.

While these bonds are issued by insurance companies, and have similar qualities to insurance, they are not insurance. But bonds are done through insurance companies because they have solvency and can cover the penal sum (the amount due in the case of a default).

Surety Bonds involve a 3 party contractual obligation between the following:

1) the Surety - the insurance company that will issue the bond and act as an intermediary between the Principal and the Obligee

2) the Principal - the party responsible for the total and timely completion of the obligation established within the bond

3) the Obligee - the party that is issued the bond and is the recipient of the service set within the bond

Surety Bonds are essential for ensuring conditions of set within bonds and for ensuring the appropriate award of money damages in the cause of non fulfillment. Now you can go forward with a surety whether Principle or Obligee.

While this information is reassuring, there is still some additional information about Surety Bonds. All Surety Bonds include bond premiums as part of market competition and risk. Depending on the type of bond you seek, the percentages can range anywhere from 1% to 20% and they could include a minimum charge or even be set to a graduated rate. Don't forget that bonding rates can also vary according to the applicants credit

The time required to get a bond can range, depending again on the type of bond, from anywhere to same day, to a few days, to a week or more. Bond duration also vary according to type and can be from 1-3 years, the duration of a project, or a court appointed time span. So whatever type of bond you choose, make sure to do your research so you get the right bond for the right service for the right amount of time, and with the right amount of coverage. With a bond like this you have the research and guarantee of the surety to minimize your risk.

One type of Surety Bond of significance is the Contractor License Bond. These bonds are a sub-category of commercial bonds and license and permit bonds. They are important because they specify that contractors will operate their business according to all licensing regulation and statutes set in the bond form by the state. This Contractor License Bond is one of the requirements contractors must meet in order to gain a state license.

As we can see, Surety Bonds are extremely important and it is vital to have them. Do your research and get the surety you want.

Understanding Surety bonds involves understanding some area specific jargon and facts you deserve to know.

More business, are applying for surety bonds, does this mean that the recession is over? In this last quarter surety applications went up for the first time in almost two years. This is a good sign for the economy, since bonds are required for new businesses as well as existing businesses. Construction bonds went up too showing that the construction industry is slowly coming out of a slump. Hopeful these trends will continue and America's economy prospers once more.

Who benefits from Bonds?

A surety bond is an unsecured loan in force to protect a third party or parties named the obligee. The State in most cases is acting as the obligee on behalf of its citizens. The state requires bonds to be drafted to protect the individuals or companies that transact business with the principal bond holder. Most professional regulated businesses are required to satisfy this requirement before they can obtain a license. Contractors, Car Dealers, Mortgage Brokers are all required to obtain bonds. In some states Sales tax bonds are required for every business. Surety bonds have been around for thousands of years, they are the oldest form of Insurance.

Where do you get Surety Bonds?

In order to obtain a bond the principal must first fill out an application with a Surety Company. The next step is to find a Surety Company that will write the risk. Make sure that the Surety is licensed and rated for the State you're applying for the bond in. Your best option is to apply for your Surety Bond with Surety Agents. Look for Surety Agents that are not tied down to one company.

Underwriting for Bonds

Applying for a surety bond is similar to applying for a credit card or a loan. Surety Bonds are underwritten like how a bank would underwrite a loan. The Surety reviews the client's credit, personal financials, business financials, and experience. If the principal has credit issues or if the financials do not meet the liquidity requirements the bond's rate will be increased.

I hope you enjoyed this article. If you want to lean more please let me know

Contractors, car dealers, and mortgage brokers are required to have this form of Insurance. Surety Bond types can be confusing you can learn more about Surety Bonds with future articles.

You must have this requirement before the obligee will issue you a license. Check your credit before applying for the bond so you can have ample time to fix any issues. Depending on what type you need you may be required to present a business financial, personal financial and a resume.

I hope you enjoyed this article keep posted because there will be more to come. If you want to lean more about this topic or anything else please let me know.

We must first understand what a surety bond does as well as the factors that are involved that will determine the rate as well as obtaining a surety bond approval. The surety company will evaluate your credit, experience, and financials. The process is very similar to apply for a business loan. Rates vary on a multitude of conditions such as which state is it for, what type of surety bond is needed, what is the financial outlook for the company or individual, how much experience does the business have and of course, which surety company is writing it.

Surety Bond Myth one:

I need two bonds, one for each state I am operating in. A broker told me that I could get a discount if I buy two bonds from them. This is not true what so ever, the surety would have more exposure and generally the rate can go up. When a broker tells you this they are probably charging a broker fee and are reducing the fee on the second bond. Now if the bond for the other state has a lower liability and the surety company has a lower filed rate it may be true. This is not the case 90% of the time.

A way to get a lower rate for your surety bond is if you buy your bond for multiple years than you would receive a discount for the additional years.

Surety Bond Myth two:

The bank told me that if I get a bond they would loan me the money The answer in 99% of the time is no. If a bank won't lend you the money you probably don't qualify for the loan. If you can't qualify for the loan you probably can't qualify for the surety bond. Now I am not telling you not to try to get a bond for a loan because you maybe one out of a million that may get it. The likely hood of getting it is slim to none. The surety a few years ago did do financial guarantee bonds, but the fall of Enron and a few other companies caused many sureties to go out of business. Since the fall of Enron surety companies have stopped securing loans.

Surety Bond Myth three:

The broker told me that they would not run credit. Unless it's a notary bond or maybe a defective title bond the surety is going to run credit. 99% of the time the surety will perform and review your credit. If you wanted a loan to extend credit from the bank wouldn't they run your credit? The same philosophy goes for the surety because they are extending a form of credit too.

Surety Bond Myth four:

I was told I can use this bond for every state. If you are referring to a state bond this is not true. Each state has their own bond form and surety bond regulations. If it is a for a federal bond like an ICC broker bond which is a federal bond then you could yes this for each state. Keep in mind just because you have a federal bond does not mean that the state does not require you to have a bond too.

Surety bond Myth five:

If I just get the bond the government will give me my license. The government will not let you get your license until you get the bond, but that does not mean that they will give you your license. You still must meet all of the obligee's requirements first. That includes a bond and other requirements such as zoning, background checks and sometimes educational requirements.