How Bond Amount Size Impacts Approval Difficulty
Most bonds are fairly easy to get, it’s just an application, you get it knocked out assuming you have good credit. If you have poor credit, then you’ve gotta use other markets that are paperwork heavy. So, that does work up to a point. Once you go over that point, up to about a million and a half, maybe stretch of the 2 million, you can get those bonds just by using internal financial statements, P&Ls and balance sheets and personal financial statement. So, those are doable, takes a little bit more work. Once you go about that one and a half to $2 million range, that’s when things start to become sticky. They’re gonna ask for reviewed financial statements, which new contractors don’t have because, who wants to pay 20 grand for reviewed financial statement? That’s when it becomes difficult. I always try to tell people, take some time, we try to make it as easy as possible, but that first bond is doable up to that range, once you go over that range, we’re starting to have to do some different things. We get to that $2 million range and suddenly it is less enjoyable to go through.