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Bond Financing


Max Action

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Just making some rough estimations for my hypothetical start-up, and I'm looking at a pretty good sized bond. Too pricey to pay out of pocket at least. I'm assuming most of you get your bond financed from one of the surety agencies?

I'm not ready to hand over my credit and finances to them for an exact quote myself yet, so I'm just curious to see what sort of ballpark terms others are getting out there. And also if there are any preferred agencies, or agencies to avoid. Pretty much any heads-up advice would be appreciated.

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So, Maxie, "Too pricey to pay out of pocket"? The price of the Storage bond isn't the biggest problem. It is required but spread over a year it seems cheap. It is raising it once you have exceeded your limit. Too many start out at a low end, $16K, hoping to keep costs down, while the price difference for a larger bond, $50K is minimal. That is my example. I expect there is a lot of archival info here on bond issues. But, I am interested in the answers you get.

Bob

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Just making some rough estimations for my hypothetical start-up, and I'm looking at a pretty good sized bond. Too pricey to pay out of pocket at least. I'm assuming most of you get your bond financed from one of the surety agencies?

I'm not ready to hand over my credit and finances to them for an exact quote myself yet, so I'm just curious to see what sort of ballpark terms others are getting out there. And also if there are any preferred agencies, or agencies to avoid. Pretty much any heads-up advice would be appreciated.

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We could have had a $65K bond from Ohio Casulty for $569. Cheap. We needed less, but they are cheap.

I had to give them my personal financial statement and that of my two partners, a proforma revenue statement, and had to sign personal indemnity (all partners and spouses). Bond folks expect a 0% loss ratio. A hassle to get...but really cheap. So, at the amounts I paid, I have way too much for my needs. But I don't want to do it again soon.

Edit....we got a unit bond....if it matters.

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Oh, I have a good bond story.

I'm having trouble getting a bond. I've been turned down by two sureties so far. I'm applying for a $40,000 unit bond.

The trouble is 7 open collections on my credit report, all of which are 5 and 6 year old parking tickets. My state (Hawaii) contracted with a Texas collection service last year to collect unpaid fines, and all of my previous paid tickets somehow ended up on the list. Neither the state nor the agency is interested in correcting the matter, they just want me to pay them again. Even if I acquiesced and paid them again, they would not be removed but show as paid collections, which the sureties said is also a no go. It's a lovely way to be screwed over by two incompetent organizations simultaneously.

I'm not sure what I'll do, but may end up paying the minimum bond in cash and worry about overproduction later. This is the last item remaining before I can submit my TTB application :angry: .

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Here is the contact information for the agent I used. The Bond is from Great American Surety.

David W. Giddings - Agent/Broker

DiBuduo & DeFendis Insurance Agency Inc.

1560 Cummins, Ste. A

Modesto, CA 95358

(209) 557-2765 Direct Phone

(209) 578-1841 Fax

(209 484-9084 Cell

Agency License #0707137

dgiddings@dibu.com

Tell him Lee gave you his contact information.

Lee

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