One of the favorite things surety bond agents love to say is either “No,” or “We need collateral.” If you approach somebody who does not know or is not familiar with this specific type of bond, the default is to say:
- No surety is writing this bond.
- We are not aware of any surety that writes this bond, or
- We are unable to write or issue this bond.
Unfortunately, that does not provide solutions or help anybody. All it does is leave you and your client in a bind.
The solution is to work with a bonding agency that knows what they are doing, comes up with creative solutions to different matters, and allows you to obtain a bond and move forward with your case, your permit, your license, or your application.
Recently I had a client who needed some language that capped an indemnification agreement for a surety bond because they were unwilling or unable to legally sign an unlimited agreement because of how the fund was structured. They spoke to two other bonding agents who could not find a company that capped the language either. They called me, and I looked into the matter. The bond had fixed penalty amounts and was not going to increase. We found the amount at which we could cap the indemnification agreement, which allowed the fund to execute it, provide the indemnity for an entity that had shown financials, and obtain the bond under favorable terms.
Another matter involved a foreign client looking to obtain surety bonds for various contracts they planned to bid on. Every surety broker they spoke with said they could not perfect the indemnity, or were unaware of any company that could.
The client contacted me. I was able to find a company that had an international capability to secure the indemnity and issue the bond in the U.S. They were able to bid on the contracts and, if awarded, they would be able to obtain performance payment bonds. This allowed them to go after new businesses, which they wanted, and create a market for their services in that area.
Planning solutions, communicating effectively, and delivering results where others could not is how I help my clients. Call my office and allow us to put together matters and issue bonds where others cannot.
If you have any money situation, give me a call or send me an email, and let’s chat.
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