Being faced with the decision between using cash or a surety bond is more common than one might think. Cash surety bond requirements arise in a range of situations including criminal and business matters. Knowing the benefits of both is the best way to choose which is right for the situation.
When is a Cash or Surety Bond Required?
A cash or surety bond may be required in a legal proceeding, as a result of criminal action, a business requirement for a construction project, or a bonding mandate for guardians and curators.
While people may be more familiar with cash bonds in criminal cases, as the Legal Aid bond explanation highlights, those same situations could also use a surety bond. When the difference is sleeping at home or sleeping in jail, a surety bond can be the faster resolution. Courts tend to set high bail amounts, which can be hard to cover in one full payment. A surety bond only requires a fraction of the cost.
One area that typically does not receive press for their bond issues is business. Every state sets mandates for their surety and cash bonds. These include business requirements for sellers of travel, real estate, et al. If a business is making the news over bonds it generally doesn’t spell good news for them.
Construction companies deal with bonds on a routine basis. The Nevada State Contractors Board cash surety bond discussion shows how each can affect project timelines. Again, being able to cover a fraction of the cost, instead of one large sum, can help the timeline and bottom line.
The Cash Surety Bond Solution
Cash may appear the less headache solution. Why not cover the full amount and not have to deal with a bond company? Well, if the cash requirement is $100 that seems doable. But what if it’s $1,000 or $10,000 or $100,000? Then cash isn’t the best way to handle things. A surety bond generally beats the cash option since it is faster to obtain.
With a surety bond, the full amount will be covered even though the upfront cost is minimal. A surety bond can also provide extra protection that paying in cash doesn’t provide. To learn more about how surety bonds work, contact a bond expert at Jurisco.
Jurisco works with clients with a variety of bond needs. A team of surety bond experts is here to answer any questions about cash surety bond situations. Contact them today.