Bonding for Construction Companies

Author: Mark Rader | Date:June 19th, 2013 | Category: Blog, Surety

For construction companies, it is important to have a Surety Broker representing you with the various insurance carriers that write bonds. Most companies can get more bonding capacity by working with someone who knows the business very well.  Knowledgeable surety brokers and surety company representatives allow you to learn valuable information about their industry, while maximizing […]

Continue reading...

Should I Change Bonding Agents?

Author: Mark Rader | Date:May 29th, 2013 | Category: Blog, Surety

Surety agents & brokers (same thing) come in all sizes and shapes. What this really means is that the experience and ability of your surety broker is going to be a result of their surety background, experience, and intelligence.  Not all surety brokers are the same, just as all financial advisors are not the same. […]

Continue reading...

What is a Surety Bond?

Author: Mark Rader | Date:May 8th, 2013 | Category: Blog, Surety

In simple terms, a surety bond is a third party financial and/or performance guarantee of a contract or other legal obligation between two parties. While there are hundreds of bond types, the most common types are bid bonds, performance bonds, payment bonds, license bonds, estate administrator bonds, and appeal bonds. The three parties to any […]

Continue reading...

The Bonding Importance Scale

Author: Mark Rader | Date:April 19th, 2013 | Category: Blog, Surety

Generally speaking, the more bonds a company needs to support its revenue stream, the more bonding will be considered a critical piece of the company’s strategy for success. On the other hand, if a company needs very few bonds or can survive just fine without bonding, the “surety function” simply may not be that important […]

Continue reading...

Quality Financial Statement Preparation

Author: Mark Rader | Date:April 4th, 2013 | Category: Blog, Surety

Sureties are experts at analyzing financial statements, normally prepared by outside CPAs at year end, and internally prepared on a monthly or quarterly basis. The business owner needs to take great care that their financial statements are accurate, timely, and contain the right information that allows a surety to make good decisions. Sureties can easily […]

Continue reading...

When Your Surety Surprises You and Says “No”

Author: Mark Rader | Date:March 27th, 2013 | Category: Blog, Surety

It’s usually not the end of the world when your surety company says “no,” but certainly this is a position you should try to avoid.  However, when a surety does surprise you by saying “no” to your bond request, there is a disconnect somewhere between the surety, the broker, the client… or all three parties. […]

Continue reading...

The Art of a Surety Deal

Author: Mark Rader | Date:March 6th, 2013 | Category: Blog, Surety

Putting together a surety program can range from a simple project to a complex undertaking, depending on the variables involved.  The key is to be able to identify the specific variables, steps, and level of complexity upfront, so the proper approach can be taken from the outset. The more complex and potentially difficult your situation, […]

Continue reading...

Surety Bonds – A Necessary Evil (Sometimes)

Author: Mark Rader | Date:February 20th, 2013 | Category: Blog, Surety

We might as well admit that many companies look at surety bonds as a “necessary evil.”  This is because it’s a product that usually requires a personal guarantee, and may also impede a business owner from success if bonds cannot be obtained under reasonable terms and conditions. On the flip side, a company with strong […]

Continue reading...

The Bonding Relationship

Author: Mark Rader | Date:February 13th, 2013 | Category: Blog, Surety

You need to have at least one good bonding relationship, and that relationship should be with your surety broker.  A good surety broker can effectively guide you through what could otherwise be an unwieldy and confusing process. For companies where bonding is critical, you may also want your broker to help you foster a personal […]

Continue reading...

The First Rule of Bonding

Author: Mark Rader | Date:February 8th, 2013 | Category: Blog, Surety

Without the right surety broker, you are rolling the “bonding dice.”  Worse yet, some people don’t know they are essentially gambling when it comes to their company’s surety bond needs.  Surety bonds are a very specialized non-insurance credit product, and a relatively small niche segment of the entire insurance industry. If you need any material […]

Continue reading...