While premium financing for most lines of business insurance has been available for decades, premium financing for the surety bond product is a relatively new concept. For the last few years, Surety1 has only had one carrier willing to allow surety premiums to be financed. Now, Surety1 has access to multiple surety bond carriers that will allow premium finance companies to finance surety bond premiums, adding much needed competition to this segment of the market.
The minimum premium for financed bonds is $1,500 and all financed surety bonds must be cancelable. Some restrictions do apply and all surety bonds are subject to underwriting approval.
The process of obtaining the premium financing through Surety1 is very simple. The steps are as follows:
1. Apply for the surety bond athttp://www.surety1.com.
2. Review, sign, and return the financing agreement we send to you.
3. Provide an initial down payment of 30% to 40% of the quoted premium.
4. Your payments will be monthly installments over a 4 to 6 months, depending on the carrier.
“This is just one more way we can deliver surety bonds to our clients at the best possible price and with terms our customers can afford” says Christine Boscacci, Assistant Vice President of Commercial Surety at Surety1. For years clients have been requesting payment plans for surety bonds and some surety companies have finally responded by allowing premiums to be financed.