Company Ownership/Organization

[chefman]

I own a used car lot and am paying a very high premium on my license bond. I was wondering if since my mother in law and I own the company, if I re-organize and make it a sole proprietorship could this help alleviate the bond premium? I have terrible credit and my mother in law has awesome credit a 760 on Transunion.
Could putting this company all in my mother in laws name help me?

[Phillies]

We run into this scenario all the time. If your Mother-In-Law has exceptional credit, and you can show that she is the sole owner of the company, we may be able to get a bond on a standard program. Some Surety companies do require that the owner have experience in the industry but if you are the manager and can show a resume as such, we may be able to help.

[chefman]

If I add my brother into the mix would that or could that be any help? He pulled a FICO score yesterday of 784. My mother in law has a 720 and I have a 524. Do they get averaged? How would this work?

[Admin]

It depends on the bonding company. Some sureties will average the scores and will be willing to write you in a standard market if everything else is in line. Other bonding companies will look at the owner with the lowest score and underwrite based on that.

Your best bet is to apply online and see what one of our agents can do for you, as there are many other factors involved in the underwriting other than credit score.