Bond Program Description

If you are looking for a bond program where you can get a bond quickly and at a low bond rate then you need an established bond program. An established bond program not only meets your daily bond needs but we are also working with the surety to improve your bond rate and even possibly discussing indemnity. The benefits of this type of program are:

• Quick And Efficient Service
• Your Single Bond Limit is well above your needs
• The Bond Aggregate limit well exceeds your needs. 
• Lower bond rate 

Surety Underwriting Factors

• The quality of the bond package and information submitted to the surety. The more information we send the better! 
• Company balance sheet working capital compared to the backlog. 
• Contractors backlog 
• Your largest previously completed contract. 
• Owners personal credit 

Things To Consider

• The quality of the company financials and how they are prepared.
  • Ideally CPA prepared yearend 
  • If not this could limit the single bond approval limit and or bond rate. 
  • Possibly SBA may be needed? 
• Company balance sheet working capital compared to the backlog. (otherwise look at the SBA Bond Package)
  • Working Capital X 10 is the bond program. 
  • Backlog is the cost to complete all the work listed on the work on hand schedule 
• Your largest previously completed contract. (otherwise look at the SBA Bond Package)
  • Generally sureties are comfortable with 1.5 – 2 X your largest completed contract. Anything over that becomes an issue. 
• Owners personal credit is clean.  (otherwise look at the SBA Bond Package)
  • Must be current on all bills 
  • Prior Bankruptcies can cause problems and need an explanation. 
  • No tax issues. 

Information Needed

• A strong bond package! 
• Contractors Questionnaire 
• Three years of company yearend financials.
  • Ideally prepared by a CPA
  • If not prepared by a CPA, then a Balance Sheet and Income statement on an accrual basis. 
• Internal company financials. (balance sheet and income statement)
• Work on Hand Schedule 
• Owners Personal Financial Statement 
• Possibly bank statements verifying company cash and bank line of credit.