Build a Better Bond Program
by
Jeffrey Longenecker
of Wharton Surety Consultants LLC
(
27-Apr-2017
)
Steps to Building an Effective Surety Program
1. Build Equity and retain profit in your business
2. Build Working Capital
3. Minimize or eliminate “soft assets” 1. Doubtful Receivables
2. Goodwill and other intangibles
3. Inventory
4. Utilize the services of a CPA that is familiar with the demands and unique characteristics of your business and industry. Your CPA should do more than prepare the taxes and the annual financial statement. The CPA should advise you regarding internal management and control tools that will not only help you run the business more profitably, but at the same time position you for higher levels of surety credit at more favorable terms.
5. Maintain your good credit status, surety companies place a high value on these three factors: 1. Character
2. Capacity
3. Capital