Another FIA Surety Success Story
“Everything’s always a rush!” That’s OK. We like when people are motivated. Here are highlights from a transaction last week. We hit a series of obstacles but came back each time with a solution.
Client is pursuing a $1.5 million contract, needs to confirm they can get the bond.
- At the recent fiscal year end, the company is profitable but $0 Net Quick and $0 Net Worth As Allowed. We suggested refinancing the short term bank debt to improve the Net Quick As Allowed.
2. A review of the bank debt revealed a HUGE balloon payment looming ahead (during the term of the new contract.) NOT disclosed on the CPA financial statement! 🙁 We asked if the loan was being renewed by the bank (postpones the balloon payment.) They were not processing it yet…
3. We asked for the indemnity info to make progress on the file – but a 25% estranged owner refused to provide. After investigating, we determined we could still support the account.
4. We asked if the bank could move up the renewal date and process the loan now. They can’t.
5. We suggested a lien on property owned by the primary shareholder as collateral to support the bond. It was already pledged to the bank.
6. We suggested the bank subordinate their property lien to us so the client could get the bond and new contract (win-win-win!) They refused.
7. We suggested supporting the bond with funds control.
FIA Surety came up with SEVEN solutions to support this bond. The situation evolved and we continually responded.
We work hard to support the business. That’s what makes FIA Surety such a valuable carrier for our agents. Read our reviews, they’re awesome! Call us with your next Contract, Site or Subdivision bond need.
FIA Surety / First Indemnity of America Insurance Company
2740 State Route 10 West, Suite 205
Morris Plains, NJ 07950-1258
856-304-7348
A carrier providing A rated, T-listed bonds in all states