Qualifying for a Surety Bond

surety bond requirements

Surety bond requirements are more common than you think. Many businesses and professionals have to obtain surety bonds to operate legally, and many individuals need them to establish trust and ensure accountability.

Here’s a quick review of how surety bonds work: A principal must obtain a surety bond and follow the terms required by the obligee. If those terms aren’t met, the obligee may file a claim for damages against the bond. The surety agency that backs the bond will settle valid claims immediately, then collect the settlement amount from the principal – who has financial liability for all claims. All surety bonds work to hold one party accountable for misconduct that affects another party.

Whenever surety bond requirements exist (also known as financial bond requirements), it’s important to obtain the necessary bond ASAP. Any delay will only keep an important process from proceeding. Fortunately, qualifying for a surety bond doesn’t take much time or effort in most cases – especially when you work with a surety agency like Viking Bond Service that simplifies and streamlines the process for you. Below we have outlined this process along with some insider advice to help you qualify for whatever surety bond you need.

How to Qualify for a Surety Bond

There are dozens of different kinds of surety bonds, each with different rules and requirements depending on the state where the bond seeker lives or works. Surety bond requirements will vary. However, the process to qualify for a bond works largely the same across the board:

  • Explore the Surety Bond Requirements Before you can qualify for a surety bond, you need to know precisely what type of surety bond you need, e.g. what type of bond and in what amount. You also need to understand the bond requirements to avoid violating them later and causing expensive claims. Viking Bond Service can help you make sense of any surety bond requirements.
  • Find a Surety Agency The choice of a surety agency matters. They’re not all created equal. Service, selection, and costs can be exceptional at one agency and atrocious at another, and it’s important to pick the right agency the first time. Be sure to vet any option carefully before requesting a quote. Consider how long they’ve been in business, what they can offer, and how accommodating they are. To speed up the selection process, connect with a leading surety agency from the get-go: contact Viking Bond Service.
  • Complete a Bond Application Most bonds require a complete application that asks for information about your background, finances, and business interests. Completing an application may only take a few minutes with much of the information required being easy to recall or track down. Leading surety agencies like Viking Bond Service allow applicants to handle the entire process online at any time. 
  • Submit to a Credit Check – Bond prices reflect the bond seeker’s credit standing. People with a low credit score or financial blemish (like a bankruptcy) will pay higher rates, just as people with stellar credit will pay lower rates. Smaller bonds may not require a credit check, but most do. Typically, the credit check is what’s known as a “soft hit,” meaning it has a minimal and temporary impact on credit scores. 
  • Provide Surety Bond Requirements Before the surety agency can determine if you qualify for a surety bond, it needs to explore the details of the bond. Many applicants will need to supply a copy of the surety bond requirements written by the obligee. 
  • Meet Additional Requirements In general, the larger the surety bond, the more documentation the surety will ask for during the application process – but anyone may be asked to supply additional information. That could include a financial statement to prove assets, a list of past clients to evaluate business history, a certificate of insurance, and others. 

How to Obtain a Surety Bond

If you qualify for a surety bond, the surety agency will quote you a price for the bond premium. Factors that affect the cost of the bond include:

  • The type of bond
  • The size of the bond
  • The applicant’s credit standing

In most cases, bonds cost a small percentage of the total size, more or less depending on credit. There are exceptions, however, such as surety bonds that require collateral or a larger premium. Paying the premium activates the bond, at which point the surety will supply documentation proving you’ve met the surety bond requirements. Be aware that some bonds also require renewal, usually annually. 

What to Do If You Do Not Qualify?

If you have been told by another bond supplier that you do not qualify, don’t panic. You may be able to qualify elsewhere. Viking Bond Service specializes in working with people who have credit issues that make it harder to qualify for a bond. 

We created a bad credit surety bond program to help these bond seekers in particular, and it has helped countless people meet surety bond requirements – even people who have been denied elsewhere. We do not guarantee approval to anyone. What we do guarantee is to evaluate everyone fairly and use our vast resources to explore every bonding option available. 

Qualify for a Bond With Viking Bond Service

We make it fast, easy, and simple to see if you qualify for a bond. At Viking Bond Service, we go above and beyond to take the hassle out of bonding. Businesses, professionals, and people in all 50 states make us their faithful bond partner. If you’re facing surety bond requirements, we can most likely meet them. Do you qualify? Find out by submitting an online application at your convenience. If you have additional questions, our team has the answers. Contact us online or call 1-888-278-7389.