What is Surety Bond Premium Financing?
Surety Bond Premium Financing is a way for our clients to finance their surety bond premiums. This means that instead of paying the entire surety bond premium up front, clients of DBL Surety can now pay their premium over time. We understand that large premium amounts can significantly impact cash flows for our clients and their businesses. This is why DBL Surety has partnered with a premium finance company and is proud to offer our clients a product that fulfills their needs.
Who Qualifies for and how does Surety Bond Premium Financing work?
Surety Bond Premium Financing is available to all of our clients whose surety bond premiums are equal to or greater than $1,500 (some exclusions apply). Here’s how it works:
- First, a premium finance agreement will be sent to the client for their signature;
- The agreement outlines the amount financed, terms of the agreement, taxes, fees, and the amount of annual interest due;
- Next, an initial down payment of 30-40% of the total amount financed is charged by the premium finance company prior to issuance;
- Once the down payment is made, the premium finance company pays the entire premium amount to DBL Surety on the client’s behalf;
- Finally, the client is responsible for paying the balance owed after the initial down payment amount to the premium finance company over the course of the next four months.
Please note that the premium finance company has the right to refuse, change, or alter any of the terms and conditions outlined above. Please contact DBL Surety for more information regarding your premium finance agreement.
How do I apply for a Surety Bond Premium Financing?
- Get approved for your surety bond by filling out our Online Commercial Surety Bond Application by clicking here.
Please note that additional underwriting information may be needed depending on the bond request, information submitted, and to obtain the lowest possible rate.