Now that the Financial Year End has closed, and your taxes are probably finished, soon you will have received your Financial Statements from your Accountant. It is important that your Surety Company receive Financial Updates, so that they can prepare for upcoming bond needs for the year, and everyone can avoid surprises.
In order to update the Surety’s financial file, forward the following information as soon as it becomes available.
- The fiscal year end business financial report for December 31, 2016 (Assuming a 12/31 year-end)
- Concurrent personal financial statement(s) for all indemnitor(s)
- Current bank reference letter verifying the account’s credit relationship, balances and bank line of credit loan agreement with FYE covenant compliance confirmation.
- Work on Hand / Work in Process schedule, if not included within financial statement
Note: This is a generic list of financial updates, but differences in Surety practices and differences in Principal’s reporting may warrant further/less underwriting requirements.