Many factors play a role in determining the final cost of a performance bond, which typically amounts to a small percentage of the full contract value, usually falling between 1% and 5%. The exact cost of a surety bond depends on various variables, including:

• The bond amount
• The contract size
• The state where the contract is held
• The choice of surety provider
• The creditworthiness of the principal
• The financial status of the principal
• The nature of the work

Certain surety providers may be more willing to issue performance bonds based on the specific type of work being performed, as well as the principal’s job performance and bonding history.

Additionally, brokers and agents may charge fees such as commissions and operational costs like overnight fees and credit report charges.

Applicants with higher credit scores and no history of bond claims generally pay a lower percentage of the total bond amount. Conversely, applicants with issues such as:

• A credit score below 700
• Negative financial records like bankruptcy
• Previous bond claims (performance or otherwise)

may face a higher percentage for their performance bond.

HBSI offers surety solutions for a wide range of businesses and applicants. For those with complex credit histories, we have a program specifically designed for poor credit surety bonds. We are committed to providing the most competitive premiums for all our clients. If you’re seeking a performance bond quote and have poor credit, you might be required to offer collateral for the bond.

Whatever your performance surety bond requirements may be, our team of bonding experts is here to assist you throughout the process, ensuring you secure the best possible terms. If you’ve faced rejections for performance bonds previously, we encourage you to apply with us. We take pride in our track record of helping more individuals gain approval for the surety bonds they need