Utility deposit guarantee bonds, also known as utility service guarantee bonds, utility deposit bonds or just plain utility bonds, offer a guarantee to the utility company for various services like power, water, and gas.
Essentially, if you fail to pay your utility bills, the utility bond becomes a guarantee for payment. Most companies these days do not provide utilities without a deposit guarantee, especially when it comes to commercial establishments.
How do utility deposit guarantee bonds differ from other surety bonds?
Utility bonds are different from other kinds of surety bonds because of their financial guarantee aspect. While most other Commercial Surety bonds typically protect the interests of the consumer from acts of fraud or non-compliance, utility bonds protect the interests of the company offering utility services from the financial inability of their customer to pay for the utility services used.
Bars, restaurants, warehouses, motor vehicle dealers, automotive paint and body shops, beauty salons, gyms and department stores are just a few of the establishments that are usually required to post a utility deposit and most have the option of posting a surety bond.
How to get a utility bond?
A good credit score is always the ideal situation for securing any surety bond. Bonding companies generally shy away from those with a below average credit score which has led to special programs for those with damaged credit. Let the experts at A1SuretyBonds.com provide the utility bond you need.
Why choose A1SuretyBonds.com to get your utility deposit guarantee bond?
Our online bond application process is fast, easy, and we will get the lowest possible rates based upon your specific circumstances. Don’t wait days for an approval, we typically have a quote within the hour but typically within the same day.
If your credit is currently impaired, A1SuretyBonds.com can help you out. Our strategic partnerships with multiple surety companies allow us to secure the bond you need. Our Bad Credit Surety Bond program has a 99% approval rate!
Premiums can be higher due to the increased risk, but as your credit improves, so will your rate. Let A1SuretyBonds.com get the bond you need at the lowest available rate given your current credit situation.
Who needs a utility deposit guarantee bond?
Anyone needing utilities from a company that requires a deposit before turning on their services can provide one and you get to keep your money in your business instead of letting the utility company hold it in the form of a cash deposit.
Frequent users of utility deposit bonds
- Retail businesses
- Restaurants and Bars
- Industrial facilities
- Hotels and motels
- Apartment complexes and condo associations
- Laundromats, and car washes
- Motor vehicle dealers
- Automotive paint and body shops
Already have a cash deposit? Let A1SuretyBonds.com free up some working capital by providing a surety bond in its place!
How much does a utility deposit guarantee bond cost?
The costs and requirements of utility deposit guarantee bonds vary based on the Utility Company and their required bond form. Typically Utility Deposit bonds range between 2% and 10% of the required bond amount for qualifying accounts. You can apply for your bond online by finding the state and utility company listed below and click on the Apply Now tab on the right. For additional information about your specific utility company, please visit that specific page.
Need help applying for your bond? Our team of surety bond experts are available by phone and email to address all of your questions and concerns regarding utility deposit guarantee bonds.Call (800) 737-4880 to talk to one of our experts today!