Bonds

Discussion in 'Business Operations' started by Allen's LS, Oct 22, 2005.

  1. Allen's LS

    Allen's LS LawnSite Member
    Posts: 0

    I was wondering if anyone on here knew about bonds? When I got my bond last year I paid it in full with cash. I just got a notice from them (CBIC) saying that as of the end of the date of the bond. (Jan 3, 2006) It will be cancelled and they won't renew it. :realmad: It appears that they ran a credit check and had some delequencies on the report. Does this mean I can't get a bond now? And does this mean I am going to be out of business if I can't get a bond.

    Thoughts? Suguestions? :help:
     
  2. LibFinServ

    LibFinServ LawnSite Member
    Posts: 17

    I am not entirely familiar with bonds and how they work, but if your state requires you to be bondend to operate legally and can not be bonded then yes you are obviously in trouble.

    Chances are a reputable firm will bond you with your credit delinquencies. If the credit delinquencies are the only thing holding CBIC back from re-issuing the bond then you need to look at correcting the delinquencies.

    When they informed you of the delinquencies did you inquire specifically about the nature of them? Is it possible the late payments are reporting in error?

    Post or email me your situation and I can offer some advice! January 3rd is closer than you realize!
     
  3. Allen's LS

    Allen's LS LawnSite Member
    Posts: 0

    Tim (Timothy) Which do you prefer? Thanks for replying. Anyway, I just got the notices yesterday. (Saturday) I have been trying to get a hold of my insurance agent whom I bought the bond through. I know that I do have payment delequencies on my credit report. I got behind on some bills when my Fiance' moved out. Kinda like a divorce. But I guess I don't understand why the bonding company (CBIC) would run a credit check now. And if I pay them in full every year with cash, what the problem is?:confused: Am I freaking out too soon?
     
  4. LibFinServ

    LibFinServ LawnSite Member
    Posts: 17

    Sounds like you might be! Talk to your agent on Monday and explain the situation to him. I am certain he can point you in the right direction. As for the credit lates, get caught back up and stay caught up! Credit is golden for the self employed. I recomend getting a free copy of your report and searching it for errors! There are foolproof ways to get those errors updated and / or corrected entirely. You may be surprised what you find on your report. (Get with me after you review it)

    Let me know what happens with the bond. If you don't get it resolved with your agent I sure I can dig in and find some alternatives for you.
     
  5. Allen's LS

    Allen's LS LawnSite Member
    Posts: 0

    Thanks Tim, I really appreciate the advice and help. It makes me wonder how we got things done without the Internet. LOL.
     

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