Obtaining license bonds is a typical requirement for many businesses in El Paso, Texas. The bonding may be a part of meeting city, state or federal licensing criteria.
Overview of El Paso surety bonds
Surety bonds in El Paso, Texas, work like a contract between three parties. The principal that needs to obtain a bond is your business. The obligee is the authority that imposes the bonding requirement. The third party is the surety, which backs financially the principal.
License bonds are some of the most commonly used bonds, and this counts for El Paso as well. Other types of surety bonds you may have to obtain include contract bonds and court bonds. Contract bonds are needed in case you want to bid on projects as a construction professional. As for court bonds, they may be required of you if you are assigned as a fiduciary, or if you want to bring a case to an appeal court.
Your surety bond does not protect you or your business. Instead, it is an extra layer of protection for the general public and the authorities in charge of regulating your trade. You can face a bond claim in case you do not abide by your legal obligations. Harmed parties can demand a reimbursement up to the maximum sum of your bond.
For further questions on how your bond works, just call us at (877) 514-5146. Our bonding specialists will be happy to help you out.
Questions about Surety Bonds in El Paso, Texas
How much does an El Paso surety bond cost?
The cost of your El Paso bond is determined on the basis of the bond amount that you have to post. You need to cover only a fraction of it, called the bond premium. In the typical cases, this means paying a few percentages of the bond amount, usually between 1% and 5%.
Your personal and business finances also affect the bond cost you have to pay. Your surety needs to consider factors such as your personal credit score, business financials, and liquidity and assets. In this way, it can assess the stability of your bond application. If you are seen as a low risk candidate, you can expect a lower bond premium.
Our surety bond cost page contains further details about the way your bond price is formulated.
Can I get bonded with bad credit?
Even if your finances are problematic, you may still be able to get bonded with Lance Surety Bonds. Our Bad Credit Surety Bonds program is suitable for applicants with low credit scores, tax liens, bankruptcies, or civil judgements. You can use it for most bond types, except for contract bonds.
The bonding premiums for bad credit applicants are higher, since they have to compensate for the increased bonding risk. You can expect rates in the range of 5%-15%. Since we foster close partnerships with numerous A-rated, T-listed surety companies, we can offer you exclusive rates whatever your credit score is.
How do I get my El Paso surety bond?
You can start your bonding process today. Just apply online for a free bond quote. For your exact bond price, you can complete the application and attach all paperwork. We will get back to you in no time with your calculated costs.
Further information on bonding is available on our How to Get Bonded page. Have more questions? Don’t hesitate to call us at (877) 514-5146. We are here to assist you.