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Surety Bond Premium Financing offers a premium financing option for clients who can’t afford the full bond amount up front. This is especially helpful for applicants with higher premiums due to poor credit history. Payment plans allow you to purchase your bond across several more manageable installments. 

Read on to learn more about surety bond premium financing and decide if it’s right for you. 

What Is Premium Financing?

Surety bond premium financing works as a three-party agreement between you, the surety provider and the finance company issuing the loan. This agreement allows you to split up the cost of your bond premium into smaller payments spread out over a designated period of time. 

Which Bonds Qualify for Premium Financing?

To qualify for premium financing, your bond form must include a clear cancellation clause. This allows the surety to cancel the bond policy if a claim is made. Cancellable bonds minimize risk of default for the finance company if you miss a payment. They can simply cancel the plan and retrieve their money. 

Some bond contracts require a specific notice period before a surety can cancel an active bond policy. Here’s how cancellation period length impacts eligibility for financing:

  • 30-Day Cancellation Notice: Premium must be $1,500+ to qualify for financing
  • 60-Day Cancellation Notice: Premium must be $1,800+ to qualify for financing
  • 90-Day Cancellation Notice: Not eligible for premium financing

How Much Does Premium Financing Cost? 

Surety bond premium costs are a small percentage of the total bond amount. Typically, the lower your credit score is, the higher price you’ll pay. If you qualify for premium financing, you’ll pay 30–40% of the bond premium as a down payment and the remaining balance over the next 4–6 months.

Our surety experts will help determine your payment plan and base it on several factors, including credit history, bond amount and bond type. 

How Do I Apply for Surety Bond Premium Financing?

Start by applying for the bond you need on When your account manager contacts you to discuss your application, ask about surety bond premium financing options. If you’re eligible, simply sign the financing agreement and purchase your financed bond.

Apply for your free bond quote online today!

Call 1 (800) 308-4358 to talk with a Surety Expert