Bond was cancelled due to credit..any other options?

[plumbergirl]

Our company has been established since 2005. We've had a surety bond with the same company since then. A judgment was recently entered on my credit report for a debt that was 4 years old. Our surety company got wind of it and has decided not to renew our bond in Sept. The bond is not a huge amount, only 2000.00 but without the bond we cannot pull permits in our city, and therefore can't continue our work. Are there any options for us?

Thank you.

[Admin]

You have a couple of options...

1. Ditch the bond for a letter of credit or post cash
2. Apply under abad credit surety bond program

I would recommend the first option if possible, as the bond is small and you will be hard pressed to find an agency interested in writing something so small without tacking on fees.

Good luck!

[plumbergirl]

I've searched for a bad credit surety bond but everything seems to require a 10,000 bond. Are there any companies that will write a small one? We could post a cash bond if necessary but I'd rather get bonded through a company. I'm sure our premium will be raised but anything is better than handing over 2000.00. Our current premium was 100.00/yr.

[Bond Magician]

Originally Posted by plumbergirl

I've searched for a bad credit surety bond but everything seems to require a 10,000 bond. Are there any companies that will write a small one? We could post a cash bond if necessary but I'd rather get bonded through a company. I'm sure our premium will be raised but anything is better than handing over 2000.00. Our current premium was 100.00/yr.

If you do not wish to post cash, your best bet would be to contact a local insurance agency within your state. They may be able to find a market that will issue a $2000 bond.