Popular Dallas, TX Surety Bonds
Overview of Dallas Surety Bonds
When applying for a business license, Dallas businesses are often required to obtain a surety bond as a financial guarantee. The purpose of licensing bonds is to guarantee that licensed businesses comply with all state and federal regulations that pertain to them.
Licensed Dallas contractors who wish to perform work on state or federal construction projects are also required to obtain a contract bond on a per-project basis. Contract bonds guarantee that the bonded contractor performs their work in compliance with the conditions of the contract. They also guarantee that any subcontractors, suppliers and laborers who worked for the bonded contractor are paid in full.
Surety bonds offer protection in case a bonded business or contractor breaks the rules and causes damages as a result. The harmed party may file a claim against the surety bond. If the claim is valid, the surety which backs the bond must compensate them, up to the full penal sum of the bond. The bond holder is then required to fully reimburse the surety.
To find out more about what bonds are and how they work, see our detailed ‘What is a surety bond’ guide.
The sections below will provide you with information regarding the cost of bonds in Dallas, getting bonded with bad credit and how to apply for your surety bond.
Want to speak to one of our bond professionals? Call us at 866.450.3412!
Cost of Surety Bonds in Dallas, Texas
Getting bonded requires you to pay a premium on your surety bond. That rate is determined by the surety based on two factors: the bond’s amount (or penal sum) and the financial standing of the applicant.
Bond amounts vary from bond to bond. Some bonds have fixed amounts, such as the Texas auto dealer bond which is $25,000. Others, such as the Texas sales tax bond, vary and are determined by the institution requiring the bond.
The bond cost is only a small percentage of the full bond amount. The exact percentage is determined by the surety upon reviewing an applicant’s personal credit score, as well as other personal financials. Credit score is the most important factor, and the higher a credit score, typically the lower the bond cost.
If you want to know how much your surety bond in Dallas will cost, complete the surety bond application, and we’ll provide you with a free quote.
Getting Bonded With Bad Credit
With the exception of applicants for contract bonds, all other applicants can get bonded even if they have bad credit.
We have designed our Bad Credit Program to enable applicants with low or nonexistent credit scores to obtain their bonds and continue doing business. By improving their score over time, such applicants can get a better rate on their bond in the future.
Rates under this program are slightly higher, but are provided by the same sureties that issue bonds for applicants with higher scores. Regardless of the credit score, we always do our best to find the lowest possible rate for our applicants.
See the program page for more information about getting bonded with bad credit.
Get Your Surety Bond in Dallas Today.
To get bonded, or to apply for a free quote on your bond, complete our simple bond application form. We’ll then contact you with your quote, as well as further details regarding the bonding process.
Once you complete the application process it will take about two working days for your bond to be issued. We’ll send you the original bond by mail, and supply you with a digital copy of your bond per email as soon as it’s issued.
For any questions about the bonding process and requirements for Dallas surety bonds, contact us at 866.450.3412. Our bond experts are at your service.