Do I have to be in business for a certain amount of time?

[Bond Magician]

Hello,
Do I have to be in business for a certain amount of time in order to be approved for a surety bond? Does it help if an applicant is an established business?

[Surety Queen]

Originally Posted by Bond Magician

Hello,
Do I have to be in business for a certain amount of time in order to be approved for a surety bond? Does it help if an applicant is an established business?

Certainly the length of time in business can affect Surety's approval of a bond. Depending upon the bond type, it can also affect the premium. Keep in mind though, that personal credit of the owners of the company is also a factor. The larger the bond, the better it is to have been in business for a while - especially if you are able to provide business financial statements.

[h2o]

Originally Posted by Surety Queen

Certainly the length of time in business can affect Surety's approval of a bond. Depending upon the bond type, it can also affect the premium. Keep in mind though, that personal credit of the owners of the company is also a factor. The larger the bond, the better it is to have been in business for a while - especially if you are able to provide business financial statements.

When reviewing the business financials, is there a certain net worth you are looking for in relation to the bond amount?