Surety Bonds for $1 Million Dollars Loan
A lender approached me and my business and as I am looking for funds I was thinking of applying for a $1 Million dollars loan.
Apart from the business plan where they will assess if they want go ahead with it or not they also want a surety bond.
However they say that they are the ones choosing the company that I must use to get the bonds and that it must be based in Bahrain or UAE, is this normal?
What kind of fee would I be paying to have the bond typically on those values?
The lending company is based in France.
We actually have some great resources on this topic. Feel free to read our article below, which has pricing information on surety bonds. I’m not sure if requiring a company is normal or not. I would check the company’s reputability just to be sure.
– What is a surety bond:https://fitsmallbusiness.com/what-is-a-surety-bond/
– Types of surety bonds: https://fitsmallbusiness.com/types-of-surety-bonds/