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Health Club Bonds
 Some US states specify that health clubs must have a Health Club Bond
if they want to collect clients’ fees in advance. This is required to
eradicate the potential problem of a club withdrawing membership after
the client has paid for it.
The current market
Commercial bonds vary in their risk factor, with some being of higher
risk than others. Health club bonds are lower in risk than many but they
are not the lowest risk ones of all. This means you will get average
rates for this bond if you are an average applicant with a good credit
record. Furthermore the nature of the industry means you will not see
many extremes of pricing with regard to the bond premiums.
Does your agency have a special program available for health club
bonds?
If you are unable to obtain a health club bond from a traditional
underwriter, we can consider your application under a bond program for
bad credit risks. In most situations collateral will not be required;
however you can expect to pay a higher premium for such a bond. |
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