What is a concessionaire bond?
A concessionaire bond is a type of bond required of a business that wants to operate on someone’s property. This may be a business wanting to operate on public property, but private owners may sometimes also require a concessionaire bond to be furnished before allowing the business to operate.
The concessionaire bond is a non-construction contract bond. It serves as protection for grantors who make their property available to businesses for conducting commercial or other types of business activities. It guarantees that such businesses will comply with the agreement made between them and the grantor, such as to pay whatever fees or rent are agreed upon with the grantor. The bond also protects the clients of the business who received a concession against dishonest business practices.
This makes the concessionaire bond an agreement between the concessionaire, the grantor, and the surety bond company issuing the bond. The agreement guarantees that if a claim is made against the bond that the surety deems to be legitimate, the claimant will receive compensation up to the full amount of the bond. In such an instance, the bonded business will have to compensate the surety for its backing.
Concessionaire bond cost
The cost of getting your concessionaire bond is a fraction of the full amount of the bond. In some states, the amount of concessionaire bonds for public concessions is determined by the state, while in others it varies and is determined on a case-by-case basis. For private concessions the amount is typically determined by the owner of the land.
Once you apply for a bond with a certain amount, the surety that backs your bond will issue a quote for you. The surety determines your bond rate on the basis of your personal financials, such as your credit score, your financial statements, personal assets, liquidity and other factors. Among those, your personal credit score is the most important to sureties. Bond applicants with a high score can expect to be offered a rate between 0.75% and 2.5% of the full bond amount.
Bryant Surety Bonds works with some of the most reliable surety companies in the country, all of which are A-rated and T-listed. Thanks to them, we are able to offer our clients some of the lowest rates on concessionaire bonds in all states.
Bad credit bonds
Applicants with a low credit score can easily obtain a bond, thanks to our Bad Credit Program.
For only a slightly higher rate, applicants who have a low score or who don’t have a score at all can still obtain their bond without difficulty. The higher rates under this program are necessitated by the higher risk involved with bonding applicants with a lower credit score.
However, by working on their credit score and financials, and improving them over time, applicants can get progressively better quotes every time they renew their bond.
How to get your concessionaire bond
To apply for your bond just complete and submit our online surety bond application Upon receiving and processing your application, we’ll provide you with a free quote for your bond.
Call us at 866.450.3412 to speak to your surety experts if you need more information regarding the bonding requirements for your bond or any other type of bond-related advice. We’ll be happy to help!
