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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 forman / 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.
Back to "How We Evaluate A Contractor
Account"
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