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Surety Bonding, Continuity and Succession Planning

Transitioning any business can be a challenge but maybe even more so in construction. You must decide whether to sell to a family member, key employee(s), or even a third party. What is the firm worth? Is the value in intangible customer relationships, industry knowledge or hard assets such as equipment? How will the new […]

Illinois Changes Law on Retention

I have said it many times, but construction is a cash intensive business. Few things can make or break a contractor faster than cash flow. That is why retainage laws are so important. The recent Illinois retention law change now has Illinois joining many other states in enacting retainage laws that limit the amount of […]

Letters of Credit vs. Surety Bonds

Often business must make a choice between surety bonds or letters of credit to guarantee their obligations. While there are some similarities between letters of credit (also called an Irrevocable Line of Credit or ILOCs) and surety bonds, there are also serious differences between them. Businesses should understand these differences so they can make betters choices. […]

How Can You Increase Your Surety Bond Capacity?

Are you looking for a way to increase your surety bond capacity? Surety Bond Capacity is the credit that a surety bond company extends to a Principal, both on a single project basis and as an aggregate limit. Increasing surety bond capacity is important to every company doing bonded work because it allows them to […]

Why Paying Off Debt May Actually Hurt Your Surety Bonding

It is said that, “The only man who sticks closer to you in adversity than a friend is a creditor.” Debt can put a stranglehold on a contractor. It creates the need for more volume and profit just to cover interest obligations. It can be difficult to get rid of when times are tough. That […]

How Bond Companies View Bank Lines of Credit and Why You Probably Need One

An important tool for all contractors and surety bond companies is a bank line of credit or “bank line”. In a perfect scenario, all construction companies would have bank accounts full of cash at all times. Unfortunately, this is not always the case. Construction is a very cash intensive business that typically involves paying for […]

Backlog and What it Means to Your Bond Company

What is backlog and why is it different to your surety bond company? My experience has taught me that in order to be a good surety bond agent, you need to be able to translate. Unfortunately this has nothing to do with those foreign languages classes I took in High School. No I’m talking about […]