Are you based in the city of Philadelphia and planning to start a business? It’s likely that you will need to post license bonds. They may be needed to obtain a city, state or federal license that ensures your legal compliance.
Most Popular Surety Bonds in Philadelphia
Similarly to all auto dealerships in Pennsylvania, Philadelphia dealers need to get bonded. The licensing body is the Bureau of Motor Vehicles. The bond amount is between $10,000 and $50,000 and depends on the license type you’d like to get.
The Federal Motor Carrier Safety Administration requires all freight brokers to post a $75,000 bond to get licensed.
Title agencies in Philadelphia need to get bonded. The Pennsylvania Insurance Department requires a $100,000 bond during the licensing.
Philadelphia surety bonds explained
How do Philadelphia surety bonds work? They are a contract between three entities. The principal is yourself or your business that has to get a bond. The obligee is the city, state or federal authority that imposes the bonding requirement. The surety underwrites the bond.
Besides license bonds, you may also need to post contract bonds. They are often required of construction contractors who want to bid on public and private projects. In other cases, you may also have to obtain court bonds in Philadelphia. They are needed if you want to act as a fiduciary or want to appeal a court case.
What’s the purpose of bonding? Surety bonds ensure that you will follow the law in your operations. If you transgress from your legal obligations, you can get a bond claim. In this way, harmed parties can obtain a financial compensation.
Do you have more questions about the way bonding works? Just call us at (877) 514-5146. Lance Surety Bonds’ experts will be happy to help you.
Frequently Asked Questions
How much do these bonds cost?
The bond cost is dependent on the bond amount that you need to obtain. You have to pay only a bond premium, which is a fraction of the amount. Typically, the rates are between 1% and 5% for applicants with stable finances.
The factors that your surety considers when assessing your profile is your credit score, business finances, and liquidity and assets. This is how it can judge the level of risk associated with the bonding. You can expect a lower bond price if you can demonstrate strong financials.
For more details, our surety bond cost page is an in-depth resource on the topic.
Can I get bonded with bad credit?
The answer for most types of bonds is yes. We run our Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgements. If you need contract bonds, however, you cannot obtain them with bad credit.
The bond price is slightly higher, since the bonding risk is increased. You can expect a rate in the range of 5% to 15%. But don’t worry - you’ll still get the best quote with us. We have close partnerships with a number of A-rated, T-listed surety companies, so we can select the best option for your particular case.
How do I apply for a bond?
Do you want to receive your exact bond price? Just complete the full application on our website and send us your paperwork. We will deliver it in no time.
You can review our How to Get Bonded page for a detailed explanation of the bonding process. If you need more information, don’t hesitate to call us at (877) 514-5146.