That’s a great question that we sometimes get from our clients. Sometimes contractors get overextended in the normal course of business, and we get that.
Don’t worry, presenting deficit working capital to a surety bond company is not necessarily a show-stopper that will keep you from getting bonded.
There can be a number of reasons for a negative working capital position, and communication is crucial to framing a contractor’s financial information in the right context. As long as we’re aware of all of the circumstances involved, we can often take specific actions to sustain access to surety bond credit while the contractor works to improve the working capital deficit.
Transparent communication, backed by high-quality financial and project data, can help surety bond underwriters get more comfortable with a contractor’s short-term working capital issues.
You’ll learn how to better handle a negative working capital position in this two-minute video from Richard Anderson, Co-Founder at Anderson & Catania Surety Services, LLC.
Do you have negative working capital, and you’re concerned about bonding for your next project? Or maybe you just have some questions about surety bonding.
Wherever you’re at in your surety bonding journey, our team is here to help. Get in touch today!