- November 16, 2016
- Posted by: Surety Bond Experts
- Categories: Bond Approval, Surety Bonds
There are several indicator which will raise a red flag to a surety bond producer about an applicant, and therefore delay the approval of a surety bond.
One of the most obvious ones is that a claim is already open against the business applying. This will cause a lack of confidence from the surety bond producer that the applicant will not have future claims filed against them. Open communication with the surety bond producer is the best way to remedy this.
Another indicator that a delay may occur is the business’ claims history. Have claims been filed in the past? Were they found to be valid? If there is a history of claims being filed, this may make a surety bond producer wary of issuing a surety bond to the applicant.
Have you worked with the surety bond producer before? This is related to the previous point that if a surety bond producer has been able to work with the applicant, resolve any potential issues and has confidence in the applicant, the surety bond process may proceed quicker than if an applicant has a rocky history with a surety bond producer.
Is the applicant choosing a venture or industry that is heavily competitive or entails bigger projects? If a surety bond producer feels that the applicant may not be able to complete a project or run the business, they may ask for additional information to ensure confidence in the applicant’s abilities.
Is there significant and completed paperwork, preferably prepared by a CPA (Certified Public Accountant) to give confidence to the surety bond producer to issue a surety bond to the applicant?
As with any relationship, communication, trust and confidence in the other’s ability are tantamount to success. This can be done by providing financial documents, maintaining a good business history and avoiding having claims filed against your business by running your business legally with integrity, honesty and confidence. If hurdles do occur during the application process, it is always a good idea to have a plan on how to overcome them.
We here, at GotSuretyBonds.com are an independent bond-only agency, committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each and every one of them unsurpassed attention and support to ensure a mutually beneficial relationship. We have a keen understanding that success for everyone is only possible through helping all of our constituents achieve their goals and objectives, we believe that a truly satisfied customer, employee or vendor is the best business strategy of all. Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. Because of our credibility within the underwriting community and longevity in the industry, we are able to act as powerful advocates for our clients. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.