Working Capital

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…

Typically your surety services partner is going to look at your overall working capital when evaluating a surety bond, but that’s not always the case. In the contracting business, we recognize that a contractor’s overall working capital can fluctuate based on the completion stages of different projects, payment cycles, and many other factors.    That’s why…

Anderson & Catania Co-Founder, Richard Anderson, offers another inspiring AR collection story from the front lines! We love helping our contractor clients find the perfect surety solution. We also like to help them in any other way we can, like assistance with collecting their hard-earned money! Have any of you ever had trouble collecting an…

Anderson & Catania Senior Surety Bond Producer, Tony Demartino, provides some excellent insights on how to manage bank sweeps associated with commercial LOCs. Commercial bank lines of credit can be an excellent way to manage your business’s short-term obligations and expenses, like payroll, accounts payable, etc.  The problem can be that most banks require you…

Anderson & Catania Co-Founder, Richard Anderson, has another entertaining AR collection story from the front lines. You won’t want to miss this one! How important are credit and collections for contractors? AR collections are critical to keeping cash flow positive. So what can you do when you’re not getting paid, and your calls are not…

Anyone who has ever had an ownership position in a business knows how stressful and challenging accounts receivable can be. Construction companies are uniquely aware of these challenges.  Almost half of all new businesses will fail in the first five years of operation. And this is often caused by poor AR collection practices, especially in…

Joe Catania, President of Anderson & Catania Surety Services, explains how bond companies view bank lines of credit. How does the availability impact the surety bond underwriting process? A bank line of credit adds extra cushion and comfort to the surety underwriting process.  The surety underwriter likes to see the bank support just in case there…

Brent Headley of Anderson & Catania Surety Services explains how relationships with building contractors are built on trust and how a good banking relationship can help establish that trust. Are bankers friendly to construction companies? “Interestingly, I have found the banks can sometimes not appreciate the important relationship that their client has with their surety…

Brent Headley of Anderson & Catania considers working capital to be one of the most important financial considerations in determining a contractor’s bonding program. How Much Working Capital is Needed to Support a Bonding Program? Working capital is the balance between a contracting company’s current assets minus its current liabilities. “Typically speaking, your standard surety…