The purchase of SBA Surety Bonds in Maryland is common practice for many businesses. These insurance products are purchased by businesses needing work done by contractors. A bond helps assure the client that their project will be completed; it also demonstrates to the contractor that their client is serious about working together.
How Small Businesses Can Benefit
Small businesses sometimes have difficulty securing contracts with big clients; up-and-coming builders, electricians, plumbers, and architects don’t always have an extensive portfolio of completed projects to show prospective clients. A client who is willing to purchase SBA Surety Bonds in Maryland before beginning a project is in effect promising to work together with the contractor they’ve selected. Small businesses shouldn’t shy away from working on projects secured with bonds. A bond is a guarantee that benefits you as much as your client.
The Example of a Payment Bond
One of the primary types of SBA Surety Bonds Maryland businesses can purchase is called a payment bond. Among other things, this bond guarantees that all the contractors and suppliers who work on a project will be paid for the work they’ve done, even if the client has to bring the project to a halt.
Small business contractors deserve to have the same assurances from their clients that are given to larger organizations. A client who chooses to use surety insurance products during their project is making a strong commitment to you. Your business can certainly benefit from taking on bonded projects.