Surety bonds are vital to your business operations. They are a required part of getting your construction bids and projects up and running; without them you can’t operate in a contracting business. For this reason, many people view them as nothing more than a necessary evil, an extra expense and red tape you have to go through.
The truth is, however, that surety bonds carry a number of real-world benefits that can be very helpful to your business in ways you probably haven’t considered. Discover why surety bonds are so important to your business operations, what they cover, the benefits of surety bonds, and how you can get set up.
Benefits of Surety Bonds
There are a number of benefits of surety bonds that you may not have even considered. These include keeping amateur opportunists out of the industry, maintaining best practices and standards, and raising consumer confidence, among others. Surety bonds, in many ways, are a core aspect of ensuring the businesses in the industry provide the best services possible.
Keeping Amateurs Out
Amateur practitioners can be the bane of any business. When someone starts operating without the proper qualifications, their mistakes can do a great deal of damage to the entire industry. When businesses are required to be bonded, they go through a rigorous process of review and vetting to be sure that they are both qualified and financially able to complete their job responsibilities.
If a business is seen to have a history of complaints, claims against their services or prior bonds, or has very little legacy in the industry, they are less likely to get a solid bond. This means only the best businesses can be bonded.
Supporting Standards and Practices
The surety bonding process helps to ensure that best practices and standards are maintained across the industry. This is because they provide customers with the ability to make claims against those businesses who don’t fulfill their obligations, who provide poor quality goods and services, whose work isn’t up to par, and the like. This is because bonds aren’t insurance; they’re loans to secure business services, and they must be repaid if used.
Raising Customer Confidence
The process of applying for a surety bond is there to make sure that your business is financially stable and capable of operating with confidence in the state in which you’re bonded. When you can advertise yourself as licensed and bonded, it shows potential customers that your company is above-board, run properly, and is strong and able to live up to their expectations for services.
A bond is a guarantee about what they’ll get when they work with you. This builds consumer confidence and gives you a reputation for secure and reputable operations.
Getting Your Business Bonded
Of course, this also assumes you’re working with the best possible resource to get your surety bonds. National Surety Services, Inc, has more than 25 years of experience providing every kind of bond, from payment to bid to SBA bonds. If you’re ready to get your business bonded, contact NSSI for more information or to get started today!