Surety Bonds for Small Business Owners

SURETY BONDS for SMALL BUSINESS OWNERS PRESENTED BY SURETYBONDS.COM Surety bonds are a common component of business licensing, but many first-time entrepreneurs don't know about them. WHAT IS A SURETY BOND? Knowing what surety bonds are and the purpose they serve before you embark on your small business journey can alleviate stress on your startup capital and more importantly, yourself. In proper terminology, a surety bond is a contract between 3 parties. For a business license and permit bond, the three parties are: • Principal: you, the business owner purchasing the surety bond • Obligee: the entity requiring you to purchase the bond, usually the government Principal Obligee • Surety. the company backing the bond, providing its line of credit Surety In simpler terms, these types of surety bonds act as a promise that the business is following their city, state, and federal government's legal requirements for their particular type of business. In the event that the business does do something wrong, the bond is in place to protect the customer from financial loss or damages. WHO NEEDS A SURETY BOND? Surety bonds are required for many types of businesses, including these common industries: Clubs Health Dealers Alcohol elemarketen cleaning HOW MUCH DO SURETY BÓNDS COST? Surety bonds will cost a varying percentage of the full amount of the bond coverage. The premium (or cost you pay) ranges anywhere from 2 percent to 10 percent of the bond's amount required. 6 2-10% Premiums are determined by the surety provider based on factors like your credit score and the risk factor of your business. DRISK Source http://www.smellbizdaily.com/22375/surety-bonds-smel-business-owners/ SuretyBonds.com GUARANTEED PËRFORMANCE, NATIONWIDE 1-800-308-4358