Would you like to pay less for contractor license bonds? If you own a construction company, chances are you are looking for the lowest possible bond rates you can find. Finding lower contractor license bond rates can be difficult, however, it is worth the effort to try if you want to pay less.

Obtaining a contractors license bond is essential to working in the construction business, but you should not pay more for your bond than necessary. Many business owners are unaware that they may be inadvertently driving up the costs of their bonds. Calling a broker can help when it comes to paying less for contractor license bonds. We have the ability to search many insurance carriers to provide the best possible price.

What follows are some steps you can take to lower your bond rates:
1. Check your credit score. Good credit is essential to getting good bond rates. If you are looking to purchase or renew a bond, you may want to get a copy of your credit score first to make sure it is accurate. A shift of just a few points in either direction can have a drastic impact on how much you pay for your bonds.

2. Get a cosigner. If you credit is poor and you have the option, consider a cosigner. Of course, this cosigner is equally responsible for losses in the event of a bond claim so he or she must be willing to take this risk.
3. Take a look at your working capital. In order for underwriters to consider offering preferred surety bond rates, they want to make sure that you have enough working capital. Your working capital allows underwriters to get a glimpse of your ability to pay bills. To increase your working capital you need to make sure that you have collected on receivables more than a year old. You also might want to consider refinancing short term loans into a long term liability.
4. Make sure your company has equity. Many companies, for tax reasons, do not want equity in their company. However, to get the best bond rates, it is important that you have at least a small amount of equity. Surety companies are much more comfortable bonding such companies. They also like to see at least a small amount of growth in subsequent years.
5. Resolve License Complaints. Many surety companies will not write a bond for a contractor with a prior bond claim. In light of this fact, it is imperative that you do everything possible to resolve any potential license complaints before a bond claim is filed.
6. Consider Multi-Year Bonds. Have good credit and low bonding rates? You might want to consider locking in your bond for multiple years. While there is always a chance that preferred license bond rates will go down, you can be sure that they will go up if any of your bond rating factors become less favorable.

Whether you are getting a new contractors license or renewing your existing license the above should help. Everyone wants to pay less for contractor license bonds. So, don’t just settle on the first quote you get. Give Patriot Bonding LLC a call.