Construction Executive published an article by Assurance Partner Robert Mercado and Senior Manager Michelle Scarpone, about how to maximize the power of surety credit.
In order to maximize potential surety credit, contractors should prepare in advance for the underwriting process. Surety credit relies heavily on the contractor’s year-end financial statements. Knowing this and understanding the adjustments discussed above, contractors can be proactive to reduce items that have a negative impact on surety-adjusted working capital before the contractor’s year-end. Doing so will maximize the surety working capital and in turn, ultimately maximize the surety credit.