RESOURCES / FINANCIAL STATEMENTS AND UNDERWRITING
How underwriters read financials, the metrics that drive decisions, and CPA practices that affect capacity.
6 ARTICLES IN THIS CATEGORY
A contractor asked me recently how bonding capacity is calculated. He wanted a formula. Something he could plug numbers into and get an answer.
5 min read · 1,033 words
A GC I was talking with a few weeks ago told me his balance sheet looked great. Working capital was up. Cash in the bank was healthy. He could not understand why his underwriter was asking tough questions about his…
5 min read · 1,016 words
One of the first things that surprised me at WIA was how often bonding conversations circle back to the bank. A contractor's banking relationship affects their bonding program more directly than most people realize. And…
5 min read · 1,005 words
I was reviewing a file at WIA with one of the senior surety professionals when he stopped on a set of financial statements and said something I have not forgotten: "This CPA is costing this contractor half a million in…
5 min read · 961 words
I remember staring at a contractor's balance sheet during my first few weeks at WIA, trying to figure out why the surety professionals around me were so focused on a single page. Revenue was on the income statement…
5 min read · 1,083 words
A contractor I met through WIA told me something that stuck: "I had my most profitable year ever, and I almost could not make payroll in September." He was not exaggerating. His income statement showed strong margins on…
5 min read · 1,023 words