beginner problem

[Admin]

Originally Posted by Unregistered

Don't you think collateral or funds control could possibly be some help in getting bonding over $100,000?

Collateral or funds control are options that could be considered once we actually take a look at their file. Please reread what I wrote again:

Originally Posted by Admin

If you are looking to bid on a job in the near future, I would suggest setting up the $100K bond line. From there you can fax in financials and discuss a "game plan" with one of our agents.

I simply suggested the under $100K program if they need to bid on a job in the very near future. In another post I stated:

Originally Posted by Admin

I am not saying that the under $100K program is where they will stay, but it is a good baby step to get them back into public work as soon as next week.

Originally Posted by Unregistered

Unfortunately, we are all talking without proper information, so all of this talk of the $100,000 program or alternatives is putting the cart before the horse.
But, just for the sake of having some 'fun' discussion, why wouldn't you think those are an option

Agreed, we would need to see more rather than speak about possible options that may or may not exist. I never counted them out as an option, please reread my posts

Originally Posted by Unregistered

Also, some other facts we've learned -- lost a small amount of money last year. OK, not what we want to see, but, not an overwhelming amount. Especially for an equipment heavy company with heavy depreciation.
Another interesting point a lot of equipment, free and clear. Possible options with some financing on the equipment.

Does the owner have any personal funds that can be put into the company by way of additional paid in capital or by a long term note subordinated to the surety? Just a few things to look at.

These are all very good ideas, but I personally would like to see their financials to find out what would best suit them.

Originally Posted by Unregistered

As for the question about starting from scratch with a new owner who has no construction experience. I am not sure this is a good option While the company is struggling right now, the track record may still be good, or at least better than no track record. Perhaps new management showing a financial turnaround is better than starting from scratch Again, though, all speculation without knowing what the financials look like and what the history of the company looks like.

Agreed, liquidating the current company should only be used as a last resort. If this is done, then you will most certainly cut off many bonding possibilities for your company.




Problem Child, I hope we have helped to clear up some options for you and not just confuse you. I recommend not making any financial changes yet, as neither of us have seen in depth information on your company and many of the advice given is based on some assumptions on our part.


Unregistered, what agency do you work for? What's your background...I am curious, as you know surety better than most in our industry!