Every week, I talk to contractors who are surprised by how different their bonding options are from what they expected. Some assume they need CPA-prepared financials just to get started. Others think bonding is out of reach because of their credit. Most don’t realize there are two distinct program structures, and they’re being directed to the wrong one.
Understanding the difference between a credit-only program and a standard program tells you where you can start today and where you’re headed.
Credit-only programs
Credit-only programs are designed to help smaller, newer contractors enter bonded work without a full financial review. The surety reviews the owner’s personal credit score and basic company information—no CPA-prepared financial statements required.
The application is brief. You authorize a credit pull, provide a brief project description, and complete a one-page form. That’s usually enough to get a decision.
Bond limits typically range from $100,000 to $750,000. Some sureties will extend to $1 million for contractors with strong personal credit and solid industry experience. Rates are higher than those for standard programs because the surety assumes greater risk without a complete financial picture.
These programs are the right fit for:
- Contractors who don’t yet have CPA-prepared statements
- Smaller trades doing short-duration work
- Contractors who need fast approval with minimal paperwork
- Businesses rebuilding after a difficult stretch
Carriers with strong credit-only programs include Liberty Mutual, CNA Surety, and inRev. Availability varies by state and by project type.
“A credit-only program isn’t a lesser option. It’s the right starting point for many contractors, and it can lead directly to a standard program as the business grows.”
Standard programs
Standard programs require a thorough financial review. You submit year-end CPA-reviewed or audited statements, interim financials, bank information, resumes, references, and a current Work in Progress report. Underwriters assess working capital, equity, leverage, cash flow, credit history, experience, backlog, and internal controls.
In exchange for that transparency, you get considerably more capacity. Single-bond limits range from $500,000 to over $100 million. Aggregate programs for larger firms can exceed $250 million. Rates come down because the surety has a complete picture and can price the risk accurately.
Standard programs suit:
- Contractors with a consistent performance record
- Firms with clean, current financial reporting
- Companies bidding on public work above the credit-only threshold
- Contractors managing multiple active projects
Carriers known for competitive standard programs include The Hanover, Liberty Mutual, Zurich, and Sompo. Many carriers offer both program types, making a transition from credit-only to standard a natural progression rather than a fresh start.
Where the two programs differ
Requirements
Credit-only requires a credit pull and a short application. Standard requires CPA statements, WIP reports, and full underwriting.
Limits
Credit-only keeps you under $1 million. Standard programs take you well beyond it.
Pricing
Credit-only rates are higher. Standard rates decrease as your financial strength is documented.
Underwriting focus
Credit-only focuses on credit and experience. Standard focuses on financial strength, internal controls, and performance history.
Why you should be building toward a standard program
Credit-only gets you started. It won’t get you to the larger public projects.
Contractors who want to grow their bonded work need the financial systems that support a standard program. That means cleaner books, consistent CPA reviews, and accurate WIP reporting. None of it happens overnight, but it’s a straightforward goal. Sureties recognize and reward progress.
As your reporting improves, your bonding capacity increases and your rates decline. Contractors who make that investment gain access to larger jobs, better terms, and a stronger surety relationship over time.
How Ai Surety Bonding USA works with both
We place contractors in the program that fits their current situation. If you’re starting or rebuilding, we get you into a credit-only program quickly. If you have the financials to support a standard program, we submit to the carriers that offer the best capacity and pricing for your profile. Learn more about our construction surety bond solutions.
We work with all major surety carriers, giving us flexibility on both sides. You don’t need to determine which program you qualify for. That’s the first thing we assess.
If you’re unsure where you stand or whether your current bond program is the right fit, reach out. It’s a brief conversation.
Contact
Dustin SanVido
Director of Sales, Ai Surety Bonding USA
📧 dustin@aisuretyusa.com
📞 281-845-1468