The document discusses options for getting approved for a surety bond if an applicant is facing difficulties due to tightened underwriting standards or reduced credit scores. It recommends broadening the search for an agent who can write "sub-standard business" by placing higher premiums or requiring additional collateral like a letter of credit, cash collateral, or personal promissory note. Using these sub-standard options through a larger agency that has relationships with more providers may allow an applicant to obtain the necessary bond.
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Bond Qualification Problems - What Should I Do?
1. Ive had my Surety Bond for years and now I cant get approved. What can I do?
2. Why is this Happening?New bonding requirements by the states.Economy downturn has tightened qualification standards.
6. Previous Bond ClaimsBut Ive Had this Bond for YearsEvery year, renewal has been easy. Why now with the headache?
7. Guess what . . . Its not your fault.Its time for action.
8. What We Recommend . . .Broaden your search for someone to write the bond.
9. What We Recommend . . .All insurance companies have agency minimums.If youre problem is credit, you need an agent who can write sub-standard business.
12. Personal PromissoryBank Letter of Credit - LoCA Letter of Credit is essentially a document:- Issued by a bank- Guaranteeing your financial obligation.
13. Cash CollateralCash Collateral refers to you postingcash that can be returned after a creditscore increase or 1-2 years of a good track record.