Performance Bonds

[rodr3047]

Is it possible to get a performance bond on a contract over 1 million with poor credit but with strong backing from other partners such as a irrevocable letter of credit.

[Surety Queen]

Originally Posted by rodr3047

Is it possible to get a performance bond on a contract over 1 million with poor credit but with strong backing from other partners such as a irrevocable letter of credit.

Yes - it is possible. Unfortunately, I don't believe we have any programs to cover this situation. Your best option is to call and speak with the account representative who handles large bonds and see what he suggests. I know there is a company out there who specifically handles performance bonds for people with poor credit - I just don't know their information.

[rodr3047]

So it would be possible, in your opinion, would a Letter of Credit of 500,000 be enough to procure a bond of over 1 million. Or does the LOC have to be in the same amount?

[Admin]

The amount of collateral required depends on the situation...

Bad credit on one owner is not necessarilly a deal killer. What do the financials look like? What does the credit of the other owners look like? How strong are the personal financials of the owners?

In other words, it would be near impossible to give you an accurate picture of what you are looking at without reviewing your situation a bit further. I'd recommend calling (888) 592-6631 if you want to see if there is a possibility of obtaining the bond.