Construction Bonding in This Economy After Four years of a failed economy, the particular waves of harsh outcomes are rippling along the surety bond business, deluging everyone from the government-entity project owner and its taxpayers to the surety bond companies to the surety bond suppliers to the development contractors, subs, suppliers, lenders. And while many public agreements have historically required surety bonding, national experts are pointing out that many more private projects today are needing the protection regarding surety. You can find concrete steps industry leaders recommend you take to not only survive this storm but also to come out of it a stronger company, well-positioned for growth when growth gets possible. This is correct for all parties involved - the surety bond business, the construction company and the surety bond maker who intermediates for the two. The Golden Rule is becoming “Pay attention to detail”. It’s now time to really firm up your economic paperwork which means dotting all the “I’s” and also crossing all of the “t’s”. A construction company should begin be making sure that his/her financial house is in order. Make sure all financial documentation is in order. Any surety will want to study comprehensive financial statements for the past three to five years that are independently audited and adhere to Generally Accepted Accounting Principles (GAAP). These should include: balance sheets, statement of earnings, assertion of modifications in owner’s equity, cashflow statements, addendum notes to financial statements, contract schedules and economic forecasts. Credit reports, banking information and funding available also are referred to with regard to determining monetary strength. Make sure to confirm that you will be holding the correct commercial insurance and liability to protect any project, your company plus your personal finances. It’s more vital than ever to be familiar with your bank and all loan options available. Spend some serious work to cultivate this professional connection with your financial institution in order to receive the benefit of the doubt on contract bonding issues. Ask yourself these questions: Can your bank and its parent business truly fully committed long term to construction industry lending? How has your own bank’s history been for treating both you and your existing business lines of credit? Do you know if the working lines of credit will be renewed, and at what terms? The actual smart surety company and surety producer must also understand the contractor’s bank and its commitment to not just construction lending but for the individual service provider. Owners and building contractors can expect a lot more underwriting questions regarding their relationship making use of their bank. The more solidly the bank stands behind it service provider client, the easier it will be for that contractor to continue obtaining surety bonds for brand new construction tasks.
Surety Advisors, LLC is under contract to surety organizations to represent and offer their particular bonding services to individuals, companies, attorneys and also contractors. These people represent above twenty four bonding companies enabling them to produce nearly all forms of bonds for a wide range of credit situations. All of these sureties are both A+ rated by A.M. Best Company and U.S. Treasury indexed. The company had been established in 1968 and has a long track record of expertise, experience and fiscal responsibility. Whether you require appeal bonds, court bonds, probate bonds, notary bonds, fiduciary bonds, contract bonds, fidelity bonds or bid bonds, you are sure to find the best offer as well as quick, quality customer support when working with Surety Advisors, LLC. Business will be complicated. Let the experts help simplify the bonding aspect of this for you.