Financial Guidance

To satisfy a surety, adequate financials are a must

Do you think it’s tough to get a bond? You’re not alone. In fact the fast majority of contractors don’t qualify. And it’s frustrating even for the ones that do. You may simply be in the fog. Undoubtedly, you can find many professionals talking about all of the elements that must be just right to get a bond. The truth; give a surety underwriter a reviewed financial statement that meets their underwriting criteria prepared by a well respected accounting firm and match that with honest owners who have a track record of profitability and you’ve got the right formula. It is as simple as that and all the rest is fluff.

Let’s not overcomplicate the Surety Industry. Sureties are in the business of making money too, just like the rest of the world. So they do in-fact want your business. You just need to know how to give them what they want. Many contractors don’t know what a surety wants, but one thing is certain, sureties typically want you’re company to have a good amount of working capital. The problem is that most contractors don’t know how to perform this calculation like the Sureties do and don’t know how to improve their working capital position once they know.

Obviously, if you know the working capital target, you can plan to attain it. You can change your work volume, collect receivables faster and leave money in the company or cash in fixed assets. Whatever the case may be, you can’t give a Surety what they want until you understand what they need and know how to provide it. That’s where Druml Group comes in. We are experts at positioning contractors to secure a bond line. We’ve taken contractors who’ve had no plan in place and in a short time have gotten them qualified to meet a Surety’s requirements. We can show you the way too, making that fog turn into light.