Arkansas Surety Bonds

The type or Arkansas surety bond you apply for will directly determine the cost that you have to pay. All types of bond have different amounts and this amount is what sureties use to base their calculation of your premium on.

Here is how your Arkansas surety bond cost or premium is formed. First you choose your bond. All surety bonds have an amount. This amount stands for the coverage that sureties extend to bond obligees if there is a claim against the bond. Bond amounts can vary between as much as \$1000 and \$250,000 and more. Bond amounts are often determined by state governments, for license and permit bonds, or on a case-by-case basis for contract bonds. This is not the cost of your bond, though!

Your premium is a fraction or percentage of the total amount of your bond. Once you apply for a bond, sureties take a look at your personal credit score. They also consider other financial factors on some bonds but credit score is the most important one.

If you have a good credit score, sureties will typically set a rate between 1%-4% of the total amount that you will have to pay to obtain the bond. This is called a standard market rate and only applicants with good credit receive those rates.

On some bonds you may also be asked to provide further proof of your financial standing, which includes your business’s liquidity as well as personal or business financial statements. The better these are, the more likely you are to get a lower rate on your Arkansas surety bond.

How your rate is formed includes other factors as well. Consult our expert surety bond cost guide to learn more about these factors and how bond rates can vary over time. This will help you understand surety bonds much better!

Often applicants who have a low credit score may be denied an Arkansas surety bond. Sureties are usually averse to underwriting bonds for such applicants because of the higher risk perceived in bonding them.

We have created our Bad Credit Surety Bonds program to offer applicants who may get turned down elsewhere the opportunity to get bonded. We have extensive bonding experience and are interested in helping businesses thrive and develop!

To get an Arkansas surety bond under our bad credit program you will need to pay a slightly higher premium, between 5%-15% of the total amount. This is necessary in order to mitigate the higher risk involved in underwriting bonds for applicants with a low credit score or other financial difficulties.

Regardless of the the type of bond you are applying for or the rate you get, you can rest assured that we will always look for the best and lowest rates to provide you with! And just because you receive a higher rate one time, doesn’t mean you can’t lower it over time. By improving your credit score you are sure to receive a better rate as soon as the next time you apply for an Arkansas surety bond!

Applying for your Arkansas surety bond takes only a couple of minutes. Simply apply online through our website. Once you apply we will review your application and get back to you with a free quote on your personal surety bond. At this point it’s only a matter of clarifying certain details and your bond will be on its way to you.

Lance Surety Bonds has extensive experience with underwriting Arkansas surety bonds. We have underwritten bonds for many applicants both at standard market rates as well as under our bad credit program. We are dedicated to finding the best rates for our clients and work only with the best Arkansas sureties.

We are available to respond to any questions you may have at any time! Call us at (877) 514-5146 to speak to one of our surety bond experts! They know all about the requirements for getting bonded in Arkansas and will gladly provide you with all the information you need!