Archives for January 2025

Securing larger surety bonds can open the door to more significant contracts and business growth opportunities. However, surety companies require contractors to demonstrate financial strength, stability, and reliability before increasing bonding capacity. If you’re looking to qualify for larger surety bonds, improving your financial position is crucial. In this guide, we’ll outline practical strategies to enhance your financial health and increase your chances of securing larger bonds. 1. Strengthen Your… Read More

Surety bonds play a vital role in securing contracts, particularly in industries such as construction, government contracting, and service-based businesses. One of the most critical aspects of obtaining a surety bond is presenting strong financial statements that meet the surety company’s underwriting requirements. Proper financial preparation can increase your chances of securing favorable bonding terms and higher limits. In this guide, we’ll walk you through how to prepare financial statements… Read More

1. Internal Financials for Contractors What Are They? Why Are They Important? Limitations: Lack external validation, so they may not be trusted for high-stakes purposes like bonding or large loans. Who Uses Them?Small contractors with limited external reporting needs or for day-to-day operations. 2. Reviewed Financials for Contractors 3. Audited Financials for Contractors Key Differences for Contractors: Why Are Internal Financials Still Important? Which One Do You Need as a… Read More

Discover how surety bond specialists help contractors secure better terms, increase capacity, and streamline the bonding process. Learn more today. Navigating the construction industry comes with its challenges—tight deadlines, escalating costs, and complex project requirements. For commercial contractors, one critical aspect often overlooked is the need for surety bonding. While many view bonding as just another obligation, it’s actually a valuable tool that protects your business and enhances your reputation… Read More

Surety bonding for contractors involves a detailed analysis of their financial and operational health. Surety underwriters use several key ratios to evaluate a contractor’s ability to complete projects successfully and meet their financial obligations. These ratios provide insight into the company’s liquidity, profitability, and overall financial strength. Here are the most common ratios assessed: 1. Working Capital Ratio 2. Current Ratio 3. Debt-to-Equity Ratio 4. Profitability Ratios 5. Leverage Ratios… Read More

Introduction Many minority-owned contracting businesses face unique challenges in securing surety bonds, such as limited access to capital, smaller networks, or lack of familiarity with bonding processes. However, effective bookkeeping can bridge these gaps by demonstrating financial reliability and readiness to surety bond underwriters. Why Bookkeeping is Key to Surety Bonds Surety bond providers evaluate a contractor’s financial health to determine their ability to complete projects successfully. For minority-owned businesses,… Read More