Posted on: 4 April 2017Share
When you first hear the word "bond" you either think of "Bond, James Bond," or bail bonds. However, as a type of bond that you may have never heard of, surety bid bonds are very beneficial to those in the construction world, specifically contractors. From saving the contractors reputation to offering secure financial assistance, this article will discuss the unique benefits of surety bid bonds. Read on to learn more.
Benefit #1: They Save a Contractor's Reputation
If you are a contractor and you bid a big client on a job but you don't have the upfront money to start the job, then you are not going to look reputable. In other instances, if you are doing a job you have never done before and you don't have the proper equipment, you also won't look reputable. However, by having a bid bond in place, you can get the money you need to either start the job or buy the equipment you need.
Benefit #2 Secure Financial Assistance
Just like any financial process, getting a surety bid bond is a fairly extensive procedure. Not only will you have to undergo a credit check and background check, but you will have to clear of any financial issues like liens or outstanding debt. Once you are cleared, you can ensure that you will not only get the money that you asked for but that it is from a respectable institution.
Benefit #3 No Security Is Required
Another huge benefit of surety bid bonds in the contracting world is that no security is required. For instance, in many cases, you have to offer up a form of collateral for the money. However, with surety bid bonds, that simply is not the case. As long as you follow through on your payments, you shouldn't have any issues. Additionally, if you don't use the entirety of the bond, you can return the rest and only pay on the part that you used.
As a contractor, it can be hard to finance every move that you have—especially if you are a home builder. However, with surety bid bonds, you can get the financial backing that you need with peace of mind. If you would like to learn more about surety bail bonds or if you would like to see if you are a suitable candidate, contact a company near you that specializes in surety bail bonds today!