THE SURETY AGENCY, INC.

5723 High Park Drive, Minnetonka, MN  55345 ( 952) 937-3511  (952) 937-5189(fax)


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Success Stories

We KNOW SURETY AND WOULD LIKE TO HELP YOU...

Capacity:

The existing bond agent declined to consider a project in excess of $2,000,000. We gained approval on a $3,500,000 project at a lower rate where the contractor was the low bidder. Within a year we provided a bid bond to the contractor to bid on a $5,500,000 project.

On another contractor, the existing agent was declined on a project. The agent came to us, we asked a couple questions, saw a significant item which the surety was not aware of, and were able to gain approval on that same project with the same surety in the span of an hour.

Service:

The agent required an updated financial statement (including bank verification, receivables and payables aging) each time the contractor wanted to bid a project and then took three weeks to respond. We provided an option where a balance sheet, profit and loss, and work-on-hand schedule were required semiannually, and the response time on overline requests was reduced to three days at most. (Our policy is to send every bid bond request that is within the line of credit on the same day it is received).

In another instance, the incumbent agency had the information for ten days and then, the day before the bid, required the contractor to drive ninety minutes each way to pick up the bid bond. While he was doing that, we provided the same information to a new surety and had a response to him before he returned home along with a bond overnighted to him.

Rate:

The incumbent agent was charging what the market would bear, not what was appropriate for the risk involved. After providing the surety with the information, we responded in a two-day time frame and reduced the rate by more than a third.

In another instance, the agent was charging a 2.5% rate. It was readily apparent that the contractor had the financial condition and bond needs to justify a 40% reduction along with the elimination of personal indemnity, and we provided that alternative.

Other:

We were referred in to an account by a CPA. The existing surety was requiring 30% collateral plus escrow of the project funding. We negotiated a reduction to 10% collateral plus the advancing of funds against the monthly contract billings up to the amount of the collateral.


WE KNOW SURETY AND WOULD LIKE TO HELP YOU...

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