Getting approved for a $1 million performance bond requires more than simply having strong revenue. Sureties may evaluate a contractor's character, capacity, capital, financial statements, working capital, project experience, backlog, management team, credit, and the specific construction project. Learn what contractors can do to prepare for larger bonding requests, strengthen their financial profile, improve bonding capacity, and work with a surety professional before biddin

Surety bonds can seem confusing, especially if you're applying for a license, bidding on a project, or starting a business. This guide explains how surety bonds work, who they protect, how claims are handled, and how they differ from insurance. You'll also see real-world examples involving auto dealers, contractors, freight brokers, and construction companies to help you understand the bonding process.