Operating without proper permits or licenses can result in heavy fines or business shutdowns. Permit and License Bonds offer a necessary safeguard, ensuring you meet the standards set by local or federal authorities.
How Does The Credit Score Affect The Bonds?
Another major concern that contractors have about getting a permit bond is how will it take to get processed. In all situations where the contractors credit is “good” as defined above or no credit check is required the bonds can be issued immediately.
These permit bonds are in most cases electronically sealed and can be emailed directly to the contractor for their signature. In some cases an actual signature and seal is required from the Bond company and in that case the bond can be delivered the next day by Fed Ex or regular mail if time allows.
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The cost of required permit or license bonds varies by the amount of the bond required. The typical cost of a permit bond is any where from $100 to $250.The cost of this bond varies from State to State. In almost all cases the cost of the bond is $100.
Another major component of the cost of the bond is the credit of the person applying for the bond. In most cases there is no credit check for permit bonds. If there is a credit check required, the price difference for contractors with good credit versus those with bad credit is staggering. An example is the Washington License bond for General Contractors. A contractor with good credit can obtain this bond for around $200 for the year.
On the other hand a contractor with bad credit will have to pay at least $1,000 a year for the same bond. In certain States some companies do not require a credit check to issue permit bonds, so it is always best to check with the professionals at ContractorsLiability.Com for a free quote. Good credit as defined by most bonding companies:
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