works with multiple markets that offer premium financing for most license and permit bonds that meet two primary requirements:

  1. Bond must have a cancellation clause allowing surety providers to cancel the bond in the event that financing payments are not made.
  2. Bond premium must exceed $1,500 for bonds with 30 days notice required for cancellation or $1,800 for bonds with 60 days notice required for cancellation.

If you believe your new bond application meets these requirements, you can request premium financing from your representative. If premium financing is not available for your application, your representative will explain why. 

If your surety bond premium can be financed, you will be required to pay a down payment that's 30-40% of your total premium upfront as well as any additional fees required to process the financing paperwork. The financing company will then charge interest on the remaining balance, which will be split up into 4-6 monthly installments, which, again, is at the discretion of your surety provider. As with other types of financed purchases, you would be better served to pay the full premium upfront as you will ultimately pay more out of pocket for the same product when you choose to finance. 

If you do opt in to premium financing, it's important to know your bond will be canceled if you fail to make all of your payment installments in full. 

Exact terms for premium financing vary depending on the market. For example, most markets used to offer premium financing for freight broker bonds, but after a recent influx in claims across the surety industry, markets are no longer willing to finance these bonds since the risk of nonpayment and/or cancellation is so high. Contract bonds for constructions projects, probate bonds for court obligations, and financial guarantee bonds are never eligible for premium financing due to the risk associated with the obligation.

If you have further questions about premium financing, call 1 (800) 308-4358 or email, and one of our friendly representatives will be happy to help.