Credit-Only Approvals for Non-Construction Performance Bonds
Non-Construction Performance (NCP) surety bonds guarantee “non-sticks-and-bricks contracts." This includes any contract that does not relate to a building or construction job. NCP bonds include: service contracts; supply contracts; supply & install and/or fabricate & supply.
Service and supply businesses must have an NCP bond if the contract is a certain size and uses public money. NCP bonds are also required by many business contracts between two private parties.
Automatic Account Approval for Service & Supply Contracts
Through the Rapid Access Program (RAP), Merchants Bonding Company™ offers automatic account approval, based on credit, for non-construction performance bonds up to $1 million open bond penalty.
RAP is designed for automated account approvals for performance bonds without financial statements, providing a single submission point without confusion about where to apply. Once approved, qualifying accounts may receive a line of credit for quick and easy bond issuance.
Credit-Only Approvals for More than Construction
RAP supports a wide range of bonds, including service and supply contracts for non-construction trades.
Common industries include:
- Food and catering
- Janitorial
- Landscape and lawn
- Printing
- Security services
- Trash, recycling, and waste hauling
And many more!
Why use Rapid Access Program (RAP)?
Performance Bonds Made Easy
✓ Instant, credit-based approval—no financials needed
✓ Lines of credit up to $1 million
✓ Simple solution for wide variety of performance bonds
| RAP Program Limits |
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$1,000,000 single bond
|
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$1,000,000 total open bond penalty
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Service Contract Bonds
Service contract bonds guarantee the principal will perform a specific service, at a set price, for an agreed upon time period. Service contract bonds could be needed by landscapers, pest control companies, waste haulers, food service providers, and more.
There are two ways to write the contract.
- The contractor receives a fixed amount for the entire term of the contracted service.
- The contractor receives payment each time the service is performed over a set period of time.
If the contractor fails to perform and a valid claim is made, the surety may arrange for completion of the contract or compensate the obligee for covered losses, up to the bond amount.
Supply Contract Bonds
Includes Fabricate & Supply; Supply & Install
These bonds guarantee the delivery of material, equipment or other supplies as outlined in the contract. Supply bonds give financial protection to the purchaser of the materials. If the supplier fails to deliver the goods within the time and quality constraints of the contract, the surety pays for the cost of the missing materials.
These bonds may be needed by companies providing computer equipment, office supplies, wireless installation, and more.
How do I get a Surety Bond?
Surety bonds are issued by Merchants Bonding Company through insurance agents. Contact your local insurance agent or use our Find an Agent tool. They will guide you through the process, informing you of what documents and information are needed by the surety Merchants Bonding Company to underwrite your bond.
What is a Surety Bond?
A surety bond is a three-party agreement that ensures the fulfillment of a commitment or contract. For instance, the surety (Merchants Bonding Company) may provide a surety bond to a construction company (the principal) which is required by the state (the obligee), ensuring the construction company will perform the duties as outlined in the contract. In bonding the construction company, Merchants assumes the risk should the company default or not fulfill their contract. A surety bond is different from traditional insurance in that the principal is obligated to pay back the surety company on any claims paid out.
Exclusions apply. All information provided is subject to change.