We Got It Done Wednesday!!
Does my client need CPA prepared financials for this bond? This is a question that we receive often when Agents are having a difficult time finding a market to support a new bond request when their insured does not have CPA prepared financial statements. When working with companies that need bonding, we regularly emphasize that better quality financial presentations generally yield substantially better rates and higher limits. Depending on the size and frequency of a company’s need for surety bonds, the cost of hiring a good CPA-prepared statement can be completely offset by the savings on just one or two bonds. But this can be a costly expense for a growing contractor, that may not be needed, when bonding is not their top priority. Thankfully, Goldleaf does help clients work around these standards in a variety of industries where the company needs surety support but does not have the qualifying level of financial statements. And this is exactly what our Vice President, Brenda Risa, had to do in her success story below.
Brenda received a request for an environmental cleaning contractor that was looking for bonding support. They were previously set up with a bonding program, but the surety no longer wanted to support the environmental work they were doing. This company had a handful of upcoming jobs that would need bonding and two of the projects bid in two days. Based on the number of upcoming projects they had, they needed a bonding program that would support around $3MM in work. Unfortunately, they did not have any CPA prepared financial statements to support this size program, which was the first hurdle Brenda had to overcome.
Additionally, the company focused on environmental cleaning projects. In the surety industry, the word “environmental” can be a scary word. Often it is because others do not understand the complexity of their work. But Brenda focused on finding ways to better understand this client and the type of work they were doing, so she could explain to a surety why the type of work they were doing made sense to support a larger bonding program.
While there were multiple hurdles that Brenda needed to overcome, she was able to find a market that offered the $3MM program they were looking for. While they were able to obtain the bonding support that they were looking for, Brenda will continue to work with this company by providing education and advice to grow their bonding program and company. Please help me in congratulating Brenda for her excellent work on establishing this bonding program!