Don’t miss out on the perfect project because you don’t have a bond program in place. Learn what it is, how it works, and why it’s essential for your business.
What is a bond program?
A bond program is a pre-arranged agreement that allows contractors to obtain multiple surety bonds quickly without needing to go through the entire underwriting process every time. Instead of starting from scratch for each bond request, contractors are given a “line of credit” specifically for bonding. This setup streamlines the process, making securing bonds for various projects easier, faster, and more efficient.
Think of it this way: When you finance a car, you don’t reapply for a loan every time you make a payment—the credit is already in place. A bond program works similarly, providing ongoing access to bonding as your business needs it.
Why do contractors need a bond program?
If you’ve ever found yourself scrambling to get a bid bond at the last minute, you already know the value of speed and simplicity. A bonding program can make this process much easier. Here’s how:
1. Streamlined Bonding Process
With a bond program, you won’t have to start from scratch whenever you need a contractor bond. Once approved, you can get bonds issued instantly or within hours instead of days. This allows you to bid on multiple projects at once without delay.
2. Enhanced Project Flexibility
More bonding capacity means more opportunities. You’ll be able to take on larger, more complex projects, grow your business, and meet tight deadlines with confidence.
3. Increased Client Trust
Clients trust contractors with established bond programs. It signals that you have the financial strength to complete projects and meet obligations. This trust can make the difference between winning and losing a bid.
Real Talk: “All I do is private work, so I don’t need a bond program.” Not so fast. Private work and subcontractor bondbacks are more common than you may realize. Don’t miss out on a perfect project because you’re not prepared!
Types of Contract Bonds Available Through a Bond Program
A bond program gives you access to hundreds of bonds without the hassle of reapplying every time. Here are the most common types of construction bonds:
- Performance bonds: Guarantee you’ll complete the project as agreed, protecting the owner from delays or subpar work.
- Payment bonds: Ensure subcontractors, suppliers, and vendors get paid for their work and materials.
- Bid bonds: Show project owners you’re serious about your bid and can financially fulfill the contract if selected.
- Other bonds: Maintenance, supply, and subdivision bonds play specific roles in various construction projects.
Contractor Tip: The type of bond you need depends on the work you’re bidding on. A program gives you the flexibility to secure the bonds you need as your projects evolve.
How to Qualify
Getting approved for a bond program might sound intimidating, but it’s simpler than you think. Here’s what you’ll need:
1. Financial Strength
Surety providers will review your financial health, credit score, and working capital. Strong financials show that you’re capable of handling the financial obligations of your projects.
2. Experience & Track Record
A proven track record of successful project completions builds confidence in your abilities. Sureties want to see that you have experience managing the types of projects you need bonds for.
3. Relationships with Surety Providers
Working with a knowledgeable bond agent like ZipBonds can speed up the process and secure better terms. We maintain strong relationships with top surety providers nationwide to get you competitive rates and fast approvals.
Pro Tip: Make sure your financial statements are accurate and up to date. Strong, clear financials can lead to higher bonding capacity and better program terms.
4 Steps to Set Up a Bond Program
Getting started with a bond program is simpler than you think. Here’s the step-by-step process:
- Contact ZipBonds – Reach out to a reputable surety bond agency to discuss your bonding needs and goals.
- Gather Your Financial Documents – Be prepared to submit financial statements, credit reports, and project history.
- Apply & Undergo Underwriting – The underwriter will review your financials and project experience.
- Get Approved – Once approved, you’ll have a bonding line of credit to support your projects.
Fast Track Your Approval: ZipBonds offers a Quick Start Program where contractors can pre-qualify for bonds in 3 minutes or less!
Common Misconceptions
🚫 “Only large contractors need a bond program.”
Not true! Small contractors can benefit from a bond program, too. It gives you access to larger projects and higher bond capacity.
🚫 “Bond programs are complicated.”
Bond programs may seem complex, but the process is clear and straightforward with the right surety bond agent by your side. ZipBonds will walk you through every step!
🚫 “Bond programs are too expensive.”
The cost of a bond program is outweighed by the benefits of access to larger contracts, faster approvals, and increased efficiency. It’s a long-term investment in your business growth.
How the SBA Can Support Your Bond Program
For the first time since 2013, the SBA Surety Bond Guarantee Program has increased its limits:
- $9M limit for all projects
- $14M limit for federal contracts
This update gives small contractors more room to grow and take on larger projects. ZipBonds works directly with the SBA to ensure our clients benefit from these expanded limits.
Need help navigating the SBA bond program? We’ll guide you through the process and ensure you have access to the right support.
Other FAQs About Surety Bond Programs
Q: Can a small contractor qualify for a bond program?
A: Yes! With the right financials and experience, small contractors can qualify for a bond program, leading to larger projects and more growth opportunities.
Q: How long does it take to set up a bond program?
A: It varies, but with ZipBonds, it can be done in as little as a few days. Our Quick Start Program pre-qualifies you for an immediate bond capacity in under 3 minutes!
Q: What if I don’t use all the bonds in my program?
A: No problem. Your bonding capacity remains available for future projects. It’s like having a line of credit you can draw from when needed.
Why Choose ZipBonds for Your Bond Program?
At ZipBonds, we do more than provide bonds — we become your partner in growth. Here’s why contractors trust us:
- Industry expertise: With years of experience in construction bonding, we know what it takes to set up and prepare your bond program.
- Fast approvals: Our Quick Start Program can pre-qualify you in minutes. And once you have a bond program with us, we can issue contract bonds quickly.
- Personalized service: We tailor every bond program to your needs and growth goals.
- Strong relationships: Our network of surety providers helps you get better terms, better rates, and faster approvals.
Take Control of Your Bonding Process
Having a bond program in place can be a game-changer for your construction business. It provides flexibility, financial backing, and credibility with your clients. Whether you’re looking to bid on larger projects, speed up bond issuance, or expand your business, a bond program is essential.
Get Your Bond Program in Place Today
ZipBonds is ready to help you secure the bond program you need to grow your business.
- Call us: (888) 435-4191
- Email: support@zipbonds.com
Don’t miss out on a perfect project because you’re not prepared. Call ZipBonds today!