Advance Payment Bond | Surety BondAdvance Payment Bond Application
Type of BondThis surety bond is different than a Performance Bond Payment Bond It is a written statement given by the contractor that he will repay or settle the advanced cash paid by the owner related to contract. This bond ensures that the principal will perform his obligation as mentioned in the contract. If he fails to perform his obligation, then this bond makes the obligator to repay the advance as per contract. Mostly, this bond has been used by the overseas buyer to returning their advance in failure of the contract. In case of export, the importer gives advance to the exporter to complete his contract. Due to this payment, he gets a statement from the exporter that, if he fails in his commitments, he will repay the advanced amount given by the importer. Generally, every importer will insure upon this statement to get back his fund. In above case the advanced guarantee his obtained from the exporter. The amount covered by this statement is usually 10-30% of the contract price. The Advanced Payment bond is required by building contractors to fulfill his contract within the contract period. If any loss incurred to the purchaser, then the insurance company will cover the loss. Surety Company will cover the loss only when the builder cannot able to use the down payment given by the customer or the builder cannot able to refund the amount given by the customer. Insurance company will not cover the loss, when the builder fails to perform his obligation or is unable to complete his contract due to war, terrorism etc. Benefits of the Advanced Payment bond: This ensures the importer, the customer, or the owner that he will perform his obligation as mentioned in the contract .if any failure happens, and then the importer can get back his money as per the bond. Advance payment bond insures the contractor to complete his contract as per the agreement. Business that need a this surety bond usually need a contractor license bond to be registered with the state
Program: Our agency currently has several specialty programs that can help you place your Advance Payment Bond.
Advance Payment Bonds are an extension of credit, like a loan your rate will be based upon your credit situation. Most surety agencies will decline your bond submission if you don't have a 700 credit score, but our company is different. We can help you in almost any credit or financial situation. Our rates start at 1% to 3% for most surety bonds. If your credit has taken a beating the rates start at 4% to 25%.
Always check with the "Obligee" for details
Our application process for a Advance Payment Bond is easy. You can apply for the Advance Payment Bond Application .Find this bond for another state
Obligee InformationAn obligee is the entity that is requiring you to have the Advance Payment.
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