Bechtold Insurance Agency

The Bechtold Agency is one of the leading producers of contractor bonding.  Whether it's License and Permit bonds for municipalities or Performance bonding, we are the answer  to your bonding needs.

What do Bonding Companies look for in reviewing for a bond?  

Bonding Companies are looking for "Working Capital"; the ratio of current assets to current liabilities, to be above three to one.  In other words, a "preferred bonding risk" has amble cashflow on hand to address the costs of a project without tapping into an equity line or extending payment of short term liabilities.

PERFORMANCE BONDING CHECKLIST

1. General Questionaire: a basic introduction of your company to the bonding underwriters.

2.  Company Financial Statements: The last fiscal year end and current interim statements.  Tax returns have been requested as a supplement to the financials.

3. Personal Financial Statements : Requested for all owners and officers.  Latest tax returns have been requested as a supplement to the financials.

4.  Bank Reference Letter:  referencing the bank line of credit, its terms, security, present balance and expiration date.  The letter should also indicate the current and average balance.

5. Status of Contracts: listing all current contracts in progress.

6.  Specific Bond Request:  specific details for the individual project and any forms for bid and performance bond required.

7.  Brief Resume of Owners