Archive for October, 2016

Surety Bonds on the Rocks – Highway Use Tax Bond

Written by JoAnn Smith on October 21st, 2016. Posted in On The Rocks, Surety Bond Blog

Bond Type:   Highway Use Tax bond
Definition:  A Highway Use Tax Bond is a license and permit surety bond that guarantees the payment of taxes, fees, penalties and interest due to various states and the federal government by motor carriers (trucking companies) operating certain motor vehicles on public highways. Typically there is a minimum weight requirement and the vehicles must be commercial in nature. The amounts vary by jurisdiction and depend on the number of vehicles in a fleet, the weight of the vehicles and the method used to report the tax. The bond guarantees payment of these taxes whose revenues are used for highway construction and maintenance projects. These bonds are also known as Heavy Vehicle Use Tax surety bonds and Mileage Use Tax surety bonds.
Requirements: 
  • Application on BuySurety.com
  • US citizen
  • Nothing derogatory on your credit report

Obligee:  Department of Transportation for your state
Typical Bond Premium: This bond is based on personal credit and business history.  A Principal with strong personal credit might pay between 1.5 – 3%.  If the credit is lower the premium could go as high as 4-15%
Surety on the Rocks:  Apple cider Sangria  1 ½  Oz Bourbon; 1 tsp fine sugar; 2 small cloves; 1 ½ boiling water  Add bourbon, sugar, and cloves in old fashions glass or mug Add 1-2 oz (or more if desired) of boiling water and stir.  Enjoy bonnie happy hour

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Surety Bonds on the Rocks – Surety Bond Cost

Written by JoAnn Smith on October 12th, 2016. Posted in On The Rocks, Surety Bond Blog

Surety Bond Cost

Surety bonds are not something people wake up and say, “Oh, I think I’d like to get myself a surety bond today.” The fact is, you’re reading this because someone is requiring you to obtain a surety bond in order to conduct some type of business or service. As soon as you discovered that you needed a surety bond, you might have asked yourself, “what does a surety bond cost?” We’ll try to help you come to grips with your surety bond requirement. When trying to determine your surety bond cost, it helps to first understand all the parameters that go into creating a surety bond quote. The reason one needs a surety bond to begin with is because they are involved in something with risk. There’s risk involved in the activity around which the surety bond is required for. One of the primary elements of that risk is the surety bond applicant’s credit rating. For someone with good credit, for example, the surety bond costs will likely be 1-3% of the bond amount.

LOW COST SURETY BOND WITH GOOD CREDIT

For example, the Florida MVD bond requirement is $25,000. So an applicant with good credit could pay as low as $250 for this surety bond.Credit Score Matters and is the primary determining factor in the cost of the bond.Compare that with someone with a poor credit rating. It’s very hard to give rough estimates for bad credit surety bonds. Fortunately, BuySurety.com specializes in credit surety bonds, and we are confident that we can provide the lowest cost a credit surety bonds, and it’s a credit is so bad that we cannot provide a surety bond, and chances are nobody can.

BAD CREDIT

Bad credit surety bonds can cost up to 20% of the bond face value. In the example of the Florida MVD, that means that the cost of the surety bond could be as much as $5000 for someone with poor credit. For this reason, it is imperative that individuals with poor credit engage an expert at BuySurety.com to make sure they get the best possible surety bond quote. How do I apply for a surety bond?  Click here, complete the application and we will do the rest:  BuySurety.com
On the Rocks: Green Fantasy, 1 oz Dry Vermouth; 1 oz Melon Liqueur; 1 oz Vodka  Build in a cocktail glass and garnish with kiwi fruit slices.  Enjoy bonnie happy hour

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Surety Bonds on the Rocks – Surety Bond Definition

Written by JoAnn Smith on October 6th, 2016. Posted in On The Rocks

The Surety Bond Definition

Small business principals, much like corporate CEOs, have numerous responsibilities such as crafting a business plan, creating sales forecasts, administering to legal issues, managing risk, obtaining appropriate business insurance, taking care of finances, accounting and taxes, managing personnel, and much more. And, many small businesses are, at some point, required to have a surety bond.

What is a Surety Bond?

A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three partie
1. Principal
The principal is the first part of the surety bond definition. This is the business owner that is required to present the bond. This might involve a specific project (as is the case in contract surety bonds) or it might be a stipulation for doing business in a particular state (as is the case with commercial surety bonds).
2. Obligee (pronounced ob-li-jee)
This party, the second part of the surety bond definition, is the one requiring the surety bond to begin with. In the case of a construction project, this would be the project owner. For commercial bonds, this is typically a municipality such as state, county, city, with states being the most common type of obilgee in commercial surety bonds.
3. Surety
The surety is typically an insurance company that will issue the surety bond to the in exchange for a premium payment, which is much like a standard insurance premium. As the final element in the surety bond definition, They are most concerned with determining the risk associated with the surety bond agreement. The overall credit worthiness of the principal is one of the main factors they use when determining the risk, and thus the premium. Who Needs Surety Bonds? While the most common form of surety bond is used for construction, there are numerous types of surety bonds available for a wide variety of business and industries such as medical suppliers, mortgage and insurance brokers, auto dealers, health club owners, Notaries Public and more. Surety bonds can be a critical part of the success of any business owner as they help protect public and private investments by providing a secure foundation.  
Nuts & Berries 1 1/2 oz Black Raspberry Liqueur; 1 oz Hazelnut Liqueur; 1 1/2 oz Half and Half Cream.  Shake and strain into a cocktail glass.  Note: can also be made by the pitcher and served as shooters.  Enjoy!bonnie happy hour

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Surety on the Rocks – Telemarketing Bond

Written by JoAnn Smith on October 3rd, 2016. Posted in On The Rocks, Surety Bond Blog

Bond Type:  Telemarketing  Bond aka Solicitor BondBonnie - hello
Definition:    Telemarketing Bonds are surety bonds required by some states as part of their local telemarketer licensing process.  Calling into a state without first obtaining that state’s telephone solicitor license, or without first purchasing that state’s Do-Not-Call list, may result in hefty telemarketing fines.  To make sure that you are compliant, consult with your telemarketing legal counsel.
Requirements: 
  • Application on BuySurety.com
  • US citizen
  • There cannot be a felony or a disqualifying misdemeanor on the record.

Obligee:  State.  Not all states are requiring this bond.  The range of bonds requirements go from $10,000 to $100,000.
Typical Bond Premium:  For most states, the bond will cost a percentage of the bond amount. This percentage is based on personal credit and business experience.  Example: Good credit and 3 years experience will likely be 1% of the bond amount.
FAQ: Q: How do I know if I need telemarketing bonds? A: Whether you need telemarketing bonds depends on a number of factors.  The most important factor is usually which states you will be calling.  Even if you are fully licensed and bonded in your home state, many states require you to get their local license and place a state-specific bond if you want to call into their state.  Other important factors regarding whether you need telemarketing bonds include: what you sell, how you dial telephone numbers (manual vs. auto dialing), whether you have prior permission from call recipients, etc.  The bonding requirements are usually part of local state telemarketer licenses.  Thus, the above factors are important to whether you are exempt from the various state telemarketing licenses.  Consult with an experienced telemarketing attorney to determine which licenses and bonds you need.  Many exemptions apply, but you should be 100% certain that you qualify for an exemption before using it, or significant telemarketing fines may result.
Q: Where can I obtain a telemarketing bond? A: Many insurance companies issue surety bonds. Some companies even specialize in telemarketing surety bonds. There are many options so telemarketers should be sure to obtain quotes from multiple companies before purchasing any bonds. Call centers should also confirm that they absolutely need the bond before obtaining it – many exemptions apply and bond premiums are expensive.  After you know for certain that you need the bond, speak with your preferred corporate insurance broker, who may be able to help you obtain quotes from multiple bonding companies.
Q: How difficult is it to apply for a telemarketing bond? A: Applying for a telemarketer bond is similar to applying for a loan.  The insurance company will ask for information about the entity or individual that needs the bond.  Most of the information applicants will need to provide is about the applicant’s income, assets, and overall financial health.  Insurance companies often avoid issuing surety bonds to call centers who have little or no income or assets, or who are unable to obtain qualified co-signors.  This is not insurance advice so be sure to consult with a licensed, experienced insurance professional in order to obtain additional information and quotes.
Q: How much does a telemarketing bond cost? A: The cost of the annual bond premiums will usually depend on the financial position of the applicant, and on whether the applicant obtained co-signors or placed collateral.  Annual premiums range from around 1%-10% of the total bond amount, depending on these factors.
Q: What if I cannot obtain a bond? A: If the applicant cannot obtain a bond, some states accept alternatives, such as irrevocable letters of credit from a bank.  If the call center cannot obtain a required bond or letter of credit, the call center may be unable to call into the state whose bond requirement cannot be satisfied.
Surety on the Rocks:  Boozy Orange Julius: 1 cup Milk; 1 t. vanilla extract; 1 6oz can orange juice concentrate; 1/3 cup sugar; 1 ½ cup ice; 4 oz vodka – Combine all ingredients in a blender, serve and enjoy!  bonnie happy hour

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