Thinking Beyond the “Checklist” to Get the Bond Deal Done
If you’re new to bonding, the underwriting process may feel rigid and that everything needs to fit a certain mold, full of checklists, financial statements, and strict requirements. These guidelines exist for good reason: they help sureties assess risk and protect all parties involved. But what happens when a promising client doesn’t fit the standard profile? That’s where expertise, creativity, and strong relationships come into play.
Why Underwriting Metrics Matter, but They Never Tell the Whole Story
Sureties typically look for:
- At least three years in business
- A track record of similar-sized projects
- Accurate financial presentation
There is a reason these items are evaluated by the sureties, and why every underwriter will consider them when determining their comfort with a potential client. Three years in business indicates that they have weathered the period that most businesses either succeed or fail within. Successful management of other similar sized projects proves competency and ability. Accurate financial presentation gives the surety comfortability in relying on what is shown within the financials when making a decision to support the account or not.
These items are important, but they never tell the whole story, and only showcases the client on paper. Making sure that the above boxes are checked should never be the only way to evaluate a client’s potential.
A Real-World Example: When Standard Metrics Fall Short
Recently, Goldleaf’s team was approached by a contractor who didn’t check any of the usual boxes but wanted to bid a $2,500,000 project. The company was just two months old, had no completed projects, and lacked formal financial statements. By the book, this would be a quick “no” from many surety markets, especially for a $2,500,000 bid bond.
They realized quickly that focusing on the standard underwriting metrics would never work. Instead, Goldleaf focused on the people behind the company. One owner brought over 20 years of project management and estimating experience, while the other was a seasoned CPA with construction accounting expertise. Both items that provide a high level of value to a surety looking to become a prospective partner of theirs. That expertise told a story the numbers couldn’t. Goldleaf partnered with a surety willing to look beyond the checklist and arranged a meeting where everyone could talk through the plan, the risks, and the vision. The result? Approval for the $2,500,000 bid bond.
Let’s Navigate Bonding Together
Helping clients with unique situations isn’t just about closing a deal—It’s about building trust and giving them the opportunity to take their next big leap for their business. Not every deal like this will get done, but there are opportunities like this out there. These wins strengthen relationships and open doors for future opportunities.
If you’re facing a bonding challenge that feels “out-of-the-box,” Big “I” Alliance Blue partner Goldleaf is here to help. From start to finish, they’ll guide you through the process and find solutions that work—even when the checklist says no.
Goldleaf’s tremendous capacity, huge range of solutions and exemplary service makes it your agency’s ultimate surety safety net. Access Goldleaf through Big “I” Alliance Blue by logging in to the Big “I” Alliance website or emailing Alliance Blue staff.