How Surety Companies REALLY Analyze Your Construction Financials

🔗 LINKS Join the group coaching program and Master Construction Cash Flow with Profit First: https://profitfirstconstruction.com/b... Profit First For Commercial Construction is available now on Amazon! https://amzn.to/4iPdQ3w Visit the episode page at https://carpentercpas.com/bondingmist... for more details and a transcript of the show. Subscribe to get notified as soon as new episodes go live:    / @carpentercpas   ℹ ABOUT THIS EPISODE Ever wonder why your bonding agent scrutinizes your profitable financial statements like they're hiding serious flaws? In construction, your numbers tell completely different stories to banks versus bonding companies - and understanding this difference could make or break your business growth. Wade and Stephen break down the critical distinctions between how banks and bonding companies analyze your financials. You'll discover why taking cash out of your company tanks bonding capacity, how working capital calculations differ dramatically between the two, and what profit fades really cost you in credibility. This episode reveals practical strategies to strengthen your position with both lenders and bonding companies, plus the most common financial mistakes that destroy contractor relationships. Learn how to present your company's true financial strength instead of just looking good on paper. Topics we cover on this episode include: 00:42 Common Financial Mistakes Contractors Make 01:45 Differences Between Banks and Bonding Companies 04:57 The Importance of Working Capital 06:13 Paperwork and Financial Reports for Bonding 15:10 Loans to Shareholders and Subordination Agreements 19:26 Over and Under Billings: What You Need to Know 22:50 Backlog Gross Profit and Profit Fades