Can an Owner or Shareholder Distribution Impact My Bonding Capacity?

Construction company owners and shareholders often ask us about the impact of shareholder distributions on bonding capacity. And the answer may surprise you.

In the past, shareholder distributions were often viewed negatively by surety companies. But things have changed in recent years. 

So what do you need to know about distributions in today’s world of surety bonding? It’s an equation with three variables— financial history, communication, and profitability.  

Distributions can still be viewed negatively, but the context is different in today’s world of surety bonding. Profitability and financial history are the mitigating factors that affect how distributions will be perceived.

If you’re an owner or shareholder in a construction company and you’re concerned about the impact of a distribution, you’ll want to check out this 90-second episode of “Ask the Surety Pro.” Anderson & Catania Surety Account Executive Brent Headley weighs in with some timely advice and counsel.