This infographic is intended to provide information about Surety Bonds, how to maximize bonding capacity and what to look for in a surety agent. The infographic also talks about what factors to consider before a Surety underwrites its bonds.
It is essential for contractors to know their bonding capability as it determines the projects they are able to pursue. A surety bond company will not issue bonds to any contractor with unstable finances. Contractors need to constantly evaluate and understand their financial status including balance sheet, cash flow, bank relationships and capital. The year-end financial statements present a more precise financial standing of a company. A certified public accountant (CPA) can help any company formulate statements and tax planning. Contractors should work alongside them and with their bond agent to grow and succeed.
A Surety Bond company rigorously checks the financial background of a company to determine whether the company is stable or not. It closely examines the net worth, long-term debt , credit and contingent liabilities before issuing Surety Bonds.
It is imperative for a contractor to maintain a clean reputation in the market in order to qualify for surety from a reputable surety company.
Go through the below infographic for more information.