Surety Bonds - 7 Tips to Help Ensure Success For New Applicants

The difficult economic conditions are bringing greaterexperience and success in completing projects.
pressures to bear on companies seeking surety3. Prepare an accurate financial presentation. How
bonds.detailed the presentation should be will depend on the
On the one hand, many private developmentsize of the project. For projects over $1 million, you'll
contractors need surety bonds for the first time asneed a financial statement reviewed by a CPA.
they pursue public sector projects as an alternativeCertain larger projects will require an actual audit.
revenue source. At the same time, bonding4. Also have a personal financial statement ready to
companies have become much more selective inpresent.
deciding whom to bond.5. Professional references are a must.
Here are a few basic tips to help improve your6. Have your bank information in good order and
chances of landing the surety bond you need forready to hand over.
your next project:7. Be prepared to start small. You may need to
demonstrate your ability to handle smaller projects
1. Make sure to work with a surety professional withwell before receiving a bond for a larger project.
broad experience in providing bonds. Your insuranceIn some cases, a smaller project, worth less than
agent is good at providing insurance for your$500,000, may require just a simple one-page
company, but only a surety professional has theapplication and the submission of your credit score.
detailed experience and inside knowledge that theContact your surety professional for detailed advice
surety bond market requires.on exactly what information you will need to provide
2. Be able to document and clearly show yourfor your first surety bond.