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Originally Posted by Numbers How does a contractor bond line work? |
There are some options for bond lines. If you are a new company just starting out, there is the Fast Track program. This program allows you up to $200,000 of bonded work at any one time. You could do one project at $200,000 or numerous jobs that don't exceed the $200K limit. This program is designed specifically for new companies to allow them to enter into the bonding arena. If your personal credit is good, and you do the type of work that qualifies for the program, you can should be approved.
After your first year of business, if you can produce solid business financials, then this line can be increased to $200,000 for single jobs with a total aggregate of $400,000.
After a few years of business - when you can show experience and profitability, you can apply for a larger bond line.
If you are interested in the Fast Track program, please feel free to visit the following link:
Bid Bonds - Surety Bond Types