Placing your first bond? Or just need a refresher? Read on for the what’s what of surety bonds.
What is a surety bond?
Surety protects a business from financial losses, usually caused when one party fails to fulfil their end of a contract. By placing a surety (usually in the form of a bond), a business makes sure that all the project bills will be paid on time should there be any disruptions or problems fulfilling the contract.
It is a three party agreement - best described with a diagram:
How much does a bond cost?
You will usually pay 1-15% of the total bond amount to place a bond. To determine how much to pay for a bond, Surety companies would evaluate the bonds’ financial merits. The main factors in consideration are:
The type of bond being placed (some are riskier than others)
The risk of default
The risk level of the applicant
How are bonds placed?
There are several different types of bond available, so if you’re a first timer when it comes to placing bonds, let us know – we can help you choose the best one to place, according to your specific business needs.
Submit your application
With PS Surety, this only takes 3-5 minutes (maximum!)
Surety providers will determine how much needs to be paid for the bond (PS Surety does all this for you)
We discuss with you the various bond options and choose with you where to place the bond
This states that the principal agrees to pay back the full amount of any bond claim filed with the surety company
(speaks for itself!)
Receive your Bond
With PS Surety, we make sure there is no delay - you can often receive it within a day of payment.
Placing your first bond with PS Surety
We know that placing your first bond can seem costly, complicated and time-consuming – but it doesn’t have to be. We take away the confusion by guiding you through the process, step-by-step:
We walk you through each product that we think will suit your needs
We give you full transparency of the prices and options available
We guarantee you the best price available in the market
We tend to be asked the same questions a lot, so we’ve answered our clients’ most popular bond placing queries here. But if you have any more before applying to place your first bond, don’t hesitate to give us a call – and ask away.
Can't recommend PS Surety enough - they are the only people we contact when we need a bond.
We saved thousands, placed the bonds really quickly and got all the advice we needed. Delighted.