Class III Contractors Bonds - The Bond Agency

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Class III Contractors

Contractors that produce a standard "Contractors" CPA statement but have a financial "profile" that departs from the norm.

These contractors produce a standard "contractors CPA statement but the results are "non standard". Examples: Absence of cash or liquid assets. Structure of assets require discounting (i.e. aged receivables. affiliate loans, shareholder loans, etc.). Poor operational results (i.e. operating loss or poor performance ratios). Unbalanced financial condition (i.e. insufficient working capital, poor leverage or liquidity ratios, etc.) We're looking for companies that have identified the causes of their poor operational results and have taken steps to correct problems.

UNDERWRITING REQUIREMENTS:

  • Contractor Questionnaire.
  • Current CPA Fiscal Year End (FYE) financial statement and prior year FYE statement.
  • Internal or "in house" financial statement if FYE is more then 6 months old.
  • Work on Hand on required format.
  • Aging of accounts receivable.
  • Personal financial statement from each owner.
  • Owners resume and resumes of key foreman / employees.
  • Bank Line Letter.

BOND LIMITS:
We'll consider bonding in this class based on the contractors prior job experience. Bonding up to $600,000 per bond can be available without collateral in this class depending on overall strength.

BOND LINES:
Qualifying accounts will have working bond lines established based on prior experience, adjusted working capital, equity and other considerations.

RATES:
Rates on these accounts will generally be 2% or 2.5%. Scaled rates,(i.e. 25/15/10) are also available.

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For Contractors - To obtain a contract bond or bond line start here. We'll do a quick review and let you know what additional information we will need. Click Here to apply or Click Here to learn more about Contract Bonds.

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