Surety Bonds
What Is Bond Capacity and How Does It Affect My Business?
Bond capacity is the maximum total value of bonded work a surety will support for your company. It directly limits the size and number of projects you can pursue.
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What is bonding capacity for contractors?
Your surety sets a single job limit (maximum per project) and aggregate limit (total outstanding bonded work). If your aggregate limit is $2M and you have $1.5M in active bonded projects, you can only take on another $500K in bonded work until existing projects close.
Bond capacity is driven by your financial strength — working capital, net worth, and profitability. The rough rule: sureties support 10–15x your net worth in aggregate bonding.
Growing your business beyond your current capacity requires growing your financial strength. Profitable operations, strong working capital, and CPA-reviewed financials all support capacity growth over time.
Need a surety bond fast?
Trade Safe helps contractors get bonded same-day in most cases. We work with multiple surety markets to find the best rate for your situation.