How Do I Increase My Bonding Capacity?
Derived from NASBP’s Answers to 51 Questions Small Contractors Ask About Bonding Like bank credit, bonding is mainly dependent on strong financials and adequate liquidity for a contractor to take on construction projects. Bonding capacity is the maximum amount of...
Access to Capital, Financing for Small Business Event
In September, Kara, among others, spoke about Bonding and Banking Relationships at the Northwest Small Business Transportation Resource Center (NW SBTRC), Sound Transit, and Minority Business Development Agency (MBDA) Business Center. You can find pictures and...
Why should I verify a bond and how can I do so?
If the Principal (the one purchasing the bond) fails to perform as promised, the surety pays any losses and damages that occur. Without the surety, or if the surety in question is not certified to write surety bonds in said state, the public security and consumer...
What is a Letter of Bondability?
A Letter of Bondability, also known as a Good Guy letter or Sunshine Letter, has been around for a long time. Over the years, these letters have become stricter on what is required. In the past, agents would be able to prepare this letter on their own letterhead....
Update: No-Cost Event: Access to Capital, Financing for Small Business 9/25
Access to Capital, Financing for Small Business, presented by Sound Transit. Kara, among others, will be speaking on topics such as bonding, improving and maintaining credit score, reducing debt, tradition and non-traditional lending, strategies for capital access...
The Importance of the Bid Spread
Being the lowest bidder on a job can be quite exciting. However, depending on the spread between the lowest bidder and the others, the winner may be at risk. This is why surety underwriters request the other bid amounts to evaluate the spread. If the spread is greater...
Submit your SBA Bonds early! Fiscal year closure from 9/25-10/1
Due to the Federal Fiscal year end, the SBA will be closed from 9/25/2019 through 10/1/2019. Any Bid or Performance/Payment bond submissions should be made as early as possible in order to have final approval prior to end of business on Monday 9/24/2019. Give us a...
Financial Statements: Why are they so important in bonding?
Why are financial statements so important in bonding? Financial statements are the main source of information about a contractor’s financial position and performance. It provides information necessary to make economic decisions about the contractor. Financial...
New WA State Procurement Policy
Based on a new Washington State procurement policy, effective July 1st, 2019, Contractors may benefit by not requiring employees to agree to mandatory individual arbitration requirements. Mandatory arbitration for employees is where a business requires its employees...
Who Qualifies for Surety?
Sureties look at The Three C's: Character, Capacity, and Capitol. Character: Honesty, integrity and openness. When underwriting “Character”, sureties will look at the other two C’s to determine character and often refer to prior jobs and references. Capacity: Ability...