Ask Your Surety Pro – How Loans to Affiliated Companies Affect Your Surety Bond Program

If your construction company has loaned money to an affiliated entity, your surety underwriter will want to understand it — and it may affect your bonding capacity more than you expect.

In this episode of Ask The Surety Pro, Chris Ruck, Vice President at Anderson & Catania, explains how surety underwriters evaluate loans to affiliated companies, why a receivable from an affiliate may be discounted or excluded when calculating working capital, and why the surety may require the affiliate to sign the indemnity agreement.

If your business structure involves affiliated entities and capital moves between them, this episode is worth understanding before your next underwriting conversation.

⏱ Watch time: 1:27