Planning for the future is not merely a question of raising cash to support or expand your business, it’s also a question of contingency planning in the face of human frailty. While you may find that banks and bonding companies are quite happy to work with you most of the time, you have to examine how they will react when something goes wrong. Would you lend money to someone for a sound business venture if they were in bad health? Would you finance a company whose top brass was set to retire? Would you provide long-term bonding guarantees to an aged family that has no heirs to the business? In all cases, the logical answer would have to be “no.”
Even so, contingency plans are one of the least addressed issues in the credit and guarantee world. In reality, no business management can afford to ignore them. After all, if you yourself wouldn’t provide credit or guarantees under the above conditions, why should banks or bonding companies? In many cases construction companies simply choose to play the odds in the hope that everything will be fine, or they opt-out because they believe that they can react if something actually happens. This is a shortsighted approach.
So, what will happen to YOUR construction company should something go wrong? After all, if your bank hasn’t asked for contingency planning, then surely you need not worry, right? Our experience proves otherwise. For example, the sole principal owner of a highly successful construction company was suddenly taken ill with a serious medical condition and he had no contingency plan in place. Despite great success in the past, his financing was shut down in the face of the risk that his illness brought to the company. The bonding company stopped bonding, the bank stopped lending and the whole business folded like a house of cards.
Although, in the past, banks and bonding companies have been negligent about asking for specific contingency plans, now they often set stringent conditions before offering finance. Contact us; what will result is a contingency plan that will give you, your bank and your bonding company security. You can rest easy knowing that the company you’ve built over the years will remain strong and viable, even in the face of tragedy. Contingency planning can even give you a better chance of raising general finance under normal circumstances – your bank and bonding company will be more likely to support your needs since they will feel more secure overall.
To secure the future of your company, call Druml Group today. We can’t help you see into the future, but we can make sure you’re prepared for it.