How to Increase Your Bond Program
Do you need a larger bond program?
In our experience most contractors that are looking for a larger bond program have never been told what the surety needs and what information impacts your bond program. Here are some factors to consider to help you improve your bond program.
- First, understand the paperwork the surety needs. Depending on your bond needs, it could be as simple as providing the correct information to the surety and that will help improve your bond programs.
- Make sure you are working with a bond agent and not just an insurance agent that is trying to help with your bond need. Bond agents have bond only markets and understand the process and which market to submit your information depending on your unique situation.
- Does your CPA work with other contractors? Ask them for a reference. If they are working with your cousin who owns a restaurant and also helping you with your construction company, they are probably not the right fit. Your agent will guide you through the process and help you complete the paperwork.
- Factors that could impact your bonds program!
- Owners Personal Credit
- Your company financials, the numbers but also how they are prepared. Often changing how the financials are prepared makes a huge difference.
- Are you working with a Construction CPA. Often contractors work with tax professionals that help them save money on taxes and nothing else. There is a balance between saving on taxes and building company equity that directly impacts your bond program. The right CPA will not only help you understand the differences and make suggestions but they will prepare the financials properly for the surety and bank.
Finally, contact us at District Bonding and we would be happy to work with you and have one of our specialty markets improve your bonds program!