What is the Process to set up a FirstBond™ Surety Facility?
The process to secure a surety facility with FirstBond™ is quick and easy. It starts with a phone call with a representative of FCA who can provide further details on the FirstBond™ program and ensure that you are getting the right solutions for your business.
The FCA Advisor will advise you of any requirements but the basic information required to set up a FirstBond™ facility includes:
- A Notice to Reader Year-End Financial Statements for the Business
- Including Aged Accounts Receivable and Accounts Payable Listings
- FCA’s Personal Net Worth Statement for the Owner(s)
- FCA’s Contractor’s Questionnaire
- Bank Reference Letter
- Professional Resumes for the Owner(s)
The surety is looking to understand both the corporate financial position of the company and the owners, any history of bankruptcy or litigation and an understanding of the history of completed work and future business plan of the operation.
In our industry, we call these items the 3 C’s of surety. Character, Capacity and Capital.
- Character is the history, expertise and reputation of the business owners.
- Capacity is the ability to complete the work the business expects to tender. This includes review of previous completed jobs, what systems are in place for estimated, project management and accounting and whether the business has the equipment needed to complete the work. Lastly,
- Capital is the financial side of the equation. This looks at the corporate financial statements, profitability and the owners personal financial health.
An assessment of Character, Capacity and Capital are what helps the surety decide if they are going to provide a bond facility.