Every week we get inquiries from contractors who need their very first bond. This is a great question and one we love to answer. It is particularly gratifying to give a new client their first bond - of many!
There are different paths forward depending on the circumstances. Each one, each door has different aspects and we'll go over them.
Door Number 1:
Use this door for contracts (federal and all others) up to about $350,000. This is the fastest / easiest program with the first bond approval coming over in about 1 day! Only a one page application is needed - no financial statements. The program is predicated on the work being simple and normal for the client, and personal credit reports of owners and spouses must be acceptable.
This program is perfect for companies that do not need bonds in larger amounts. Other applicants can also use it as a quick way to start while completing the application process for higher amounts.
Door Number 2:
This is for contracts up to about $750,000. Similar to Door Number 1, but now add "in house" company financial statements and / or tax returns. There is a longer questionnaire to complete, along with supporting documents such as resumes, references and Work In Process schedules. Personal financial statements of all owners and spouses are also needed.
Number 3:
For contracts up to $1 million, in addition to the items in Door Number 2, a CPA prepared "Compilation" statement may be needed. This is the lowest level (least expensive) CPA financial report. It is needed once per year.
Number 4:
Contracts over $1 million may require the Door Number 3 info, plus an annual CPA Review financial report.
Number 5:
For large contracts in excess of $10 million, a CPA Audit may be required by the underwriters.
It makes sense that as the obligations become larger, higher quality, more complete information is needed.
Is there some flexibility? Sure! It may not seem so, but underwriters are motivated to be flexible and find ways to write the business. After all, no bonds = no revenues. They must find ways to say yes - occasionally.
What value does your professional surety agent add? We have the markets and the relationships to get things done. We know each market's appetite and the type scenarios they will support.
Need your first bond? Choose your door and we'll help you walk through!
Steve Golia is an experienced provider of bid and performance bonds for contractors. For more than 30 years he has specialized in solving bond problems for contractors, and helping them when others failed.
The experts at Bonding Pros have the underwriting talent and market access you need. This is coupled with spectacular service and great accessibility.
Contact us today and discuss how you start a new bonding relationship for your company, or increase your current bonding capacity. Call 856-304-7348.
Article Source: http://EzineArticles.com/9225029
There are different paths forward depending on the circumstances. Each one, each door has different aspects and we'll go over them.
Door Number 1:
Use this door for contracts (federal and all others) up to about $350,000. This is the fastest / easiest program with the first bond approval coming over in about 1 day! Only a one page application is needed - no financial statements. The program is predicated on the work being simple and normal for the client, and personal credit reports of owners and spouses must be acceptable.
This program is perfect for companies that do not need bonds in larger amounts. Other applicants can also use it as a quick way to start while completing the application process for higher amounts.
Door Number 2:
This is for contracts up to about $750,000. Similar to Door Number 1, but now add "in house" company financial statements and / or tax returns. There is a longer questionnaire to complete, along with supporting documents such as resumes, references and Work In Process schedules. Personal financial statements of all owners and spouses are also needed.
Number 3:
For contracts up to $1 million, in addition to the items in Door Number 2, a CPA prepared "Compilation" statement may be needed. This is the lowest level (least expensive) CPA financial report. It is needed once per year.
Number 4:
Contracts over $1 million may require the Door Number 3 info, plus an annual CPA Review financial report.
Number 5:
For large contracts in excess of $10 million, a CPA Audit may be required by the underwriters.
It makes sense that as the obligations become larger, higher quality, more complete information is needed.
Is there some flexibility? Sure! It may not seem so, but underwriters are motivated to be flexible and find ways to write the business. After all, no bonds = no revenues. They must find ways to say yes - occasionally.
What value does your professional surety agent add? We have the markets and the relationships to get things done. We know each market's appetite and the type scenarios they will support.
Need your first bond? Choose your door and we'll help you walk through!
Steve Golia is an experienced provider of bid and performance bonds for contractors. For more than 30 years he has specialized in solving bond problems for contractors, and helping them when others failed.
The experts at Bonding Pros have the underwriting talent and market access you need. This is coupled with spectacular service and great accessibility.
Contact us today and discuss how you start a new bonding relationship for your company, or increase your current bonding capacity. Call 856-304-7348.
Article Source: http://EzineArticles.com/9225029
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