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Surety Bond Blog


Understanding the 3-Party Agreement of Surety Bonds

Sureties, obligees, principals... what do all of these surety bond terms mean?

Does my startup business need a surety bond?

Running a startup comes with a lot of risk. Demonstrate trustworthiness to customers and authorities.

9 Things to Know When Buying Your Surety Bond Online

Buying a surety bond online is a surprisingly quick and easy process when you work with Surety Bonds Direct.

How to Get a Florida Contractor's License

How to Get a Florida Contractor's License

Getting a Florida contractor's license involves a paperwork and demonstrating that you're financially responsible.

Finding an Honest Used Car Dealer

Finding an Honest Used Car Dealer

What does it take to find an honest used car dealer that you can trust to sell you a great vehicle?

California Contractor Bond vs. California Contractor License

California Contractor Bond vs. California Contractor's License

Each is important in its own way, and each is a step on the path to becoming a licensed California contractor

How to get a surety bond with bad credit

How to Get a Surety Bond with Bad Credit

Bad credit shouldn't hold you back from becoming the entrepreneur you've always dreamed of being

What does a surety bond protect?

What Does a Surety Bond Protect Against?

Surety bonds protect a business's customers and clients against all kinds of adverse circumstances

Difference between BMC-84 and BMC-85 FMCSA freight broker bonds

What's the Difference Between a BMC-84 and BMC-85 Freight Broker Bond?

Quickly get your head around the differences between the FMCSA requirements to get your freight broker license.

How to Get a Motor Vehicle Dealers License

How to Get a Motor Vehicle Dealer's License

Thinking about opening your own car dealership? Learn about how to navigate the process, get your bond, and get your license.

How to Get a Motor Vehicle Dealers License Without a Lot

How to Get a Car Dealer's License Without a Lot

If you're just starting out in the car business a dealership without a lot might be an option for you.

The Most Common Surety Bonds in Arizona

The Most Common Surety Bonds in Arizona

Business is booming in Arizona. Which surety bonds are most frequently required to be compliant?

What Entrepreneurs Need to Know About Surety Bonds

What Entrepreneurs Need to Know About Surety Bonds

Entrepreneurs in many different fields need surety bonds to get licensed and protect their customers and themselves.

The most common surety bonds in Texas

Most Common Surety Bonds in Texas

Navigate the most common bonds in one of the fastest-growing states in the nation.

The most common surety bonds in California

Most Common Surety Bonds in California

A fast-growing economy with new businesses and investment makes CA a hot market for bonds.

How to Get a Surety Bond as a New Business

How to Get a Surety Bond as a New Business

Getting the right surety bond for your business for compliance and establishing trust with your clients.

How to Get a Dispensary License in California

How to Get a Dispensary License in California

A quick 5-step overview on how to legally obtain a California dispensary license.

Finding the Right Surety Bond for Your Small Business

Finding the Right Surety Bond for Your Small Business

How to find the right bond for your specific needs for compliance, licensing, and building trust with your customers.

How to Become a Freight Broker

How to Become a Freight Broker

With a booming consumer-driven economy and an eCommerce landscape that’s growing at lightning speed with no signs of slowing anytime soon, there’s enormous demand for all things transport in 2019.

Steps to Get a California Contractor's License

Steps on Getting a California Contractor's License

Become a licensed contractor in the state of California with the help of Surety Bonds Direct. Read this guide for step-by-step info on how to go about getting licensed the right way!

Credit Scores

Beyond the Score: What Items In Your Credit Report Affect Surety Bond Premiums?

In addition to the actual credit score, underwriters will evaluate past due amounts, the number of satisfied accounts, the number of unsatisfied accounts, and the presence, dates, and current status of any liens, judgments, bankruptcies, surety bond claims, and unpaid child support.

Motor Vehicle Dealer Bonds

How Do Motor Vehicle Dealer Bonds Work?

Motor vehicle dealers and related businesses are subject to surety bonding requirements in nearly every state. These bonds are also known as auto dealer bonds, car dealer bonds, and MVD bonds.

Contractor License Bonds

Spotlight: Contractor License Bonds

Almost every state in the country requires that certain types of contractors post surety bonds in conjunction with various licenses and permits. The bonds are required for both residential and commercial contractors engaged in many construction trades including general home improvement, electrical, roofing, drywall, HVAC, plumbing and many other specialties.

Surety Bond Prices

Are Surety Bond Costs Dropping?

The surety bond price drop can be attributed to a few different factors. First, the overall economy is relatively strong and continues to show moderate growth. This means that businesses are doing well overall and insurers that assume the risk of loss on surety bonds are faced with fewer claims and loss payouts. Additionally, more insurers have decided to enter the commercial surety market and that extra competition has led to even lower prices.

Texas Motor Vehicle Dealer Bonds

Texas Vehicle Dealer License Requirements

Texas businesses involved in buying, selling or exchanging motor vehicles or otherwise engaging in business as a dealer, directly or indirectly, including by consignment dealers, must submit application for a general distinguishing number (GDN) license issued by the Texas Department of Motor Vehicles.

Credit scores and co-signers for surety bonds

Is a co-signer right for you?

Finding an affordably priced surety bond when you have poor credit can be a frustrating experience. Often times, bond premiums for those with bad credit or no credit can exceed 10% of the bond amount. Many commercial surety bond requirements exceed $25,000 resulting in annual bond premiums of $2,500 or more for bad credit applicants! This is a significant cost of doing business for a small business owner.

Let's look at an example of a California Motor Vehicle Dealer Bond for $50,000 and the premium (cost) for 2 different buyers, Joe and Ted.