How Surety Bonds Can Help Small Businesses

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.