Take the Right Steps to Getting Digital Surety Bonds

If your business is about to enter into a contract with an outside party, it's wise to first secure a digital surety bond.

However, whether it's a construction contract or another project your business is hiring for, it can sometimes be difficult to find the right bond.

With secured sureties in mind, here are just a few tips for finding the best digital surety bond for your business needs:

Digital Surety Bonds in a Nutshell

Also referred to as an online surety bond, digital surety bonds are filed online over a secure connection.

This is much more efficient and convenient than visiting a bonding agency; which usually require both the obligee and the principal to be present.

With a digital surety bond, your business is able to send in an online bond application, receive approval, and even pay for the surety bond all online.

Other features of online surety bonds are automatic bond insurance, instant credit pulls, and automatic indemnity agreements.

Now that you know some of the benefits that go along with digital surety bonds, here are just a few ways to find the right online bond:

Research Digital Bond Companies

As with any business transaction, it's important to do a little upfront research to ensure you're working with the best company at the best price. Such is the case when choosing a digital surety bond.

In an expert interview with Steve Muxlow on digital surety bonds, Muxlow mentions the importance of using an authentic bond service.

By shopping around and researching the digital surety bond companies on the market, you can quickly weed-out the less-than-reputable companies. Reading online reviews is one of the best ways to tell whether a digital bond company is worth your time.

However, one red flag to watch out for when doing your research is higher than normal bond rates for first-time customers.

Bond rates typically fall between one and three percent. If rates are higher than that, it's wise to move on to the next company.

Ask for Online Quotes and Compare Rates

A major benefit of going the digital route, when acquiring a surety bond is the fact you can shop several bond companies at once. Many digital bond companies offer online quotes and, if they don't, don't be afraid to ask for a quote.

When equipped with multiple quotes, you can base your decision on service as well as cost by comparing bond rates.

Surety bond rates are typically based on risk as well as credit scores, but not every bond company calculates risk the same way, so compare your quotes closely.

Check with the SBA and NASBP

Whether you're looking for a traditional bond or a digital bond, navigating the surety bond process is complicated. Fortunately, the U.S. Small Business Administration and the National Association of Surety Bond Producers have plenty of helpful bond information available.

From finding a legitimate bond company to the approval process, the SBA and NASBP are great resources to have when finding and securing a surety bond for your business.

When you're ready for a digital surety bond, follow some of the advice above and choose the right bond for your business.