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Why Financial Statements Are Important for Surety Bonds
Many different types of businesses and professionals are required to purchase surety bonds in order to secure contracts or obtain the licenses they need to work in their industries. Surety bond approval is not automatically granted. Instead, surety companies want to ensure that the businesses and individuals that apply for surety bonds pose minimal risk of claims.
When you apply for a surety bond, you will be required to submit a number of documents so that the surety company can evaluate your application and the risks involved with issuing a surety bond to you. One of the key documents that you will have to provide as a supporting document with your application is a financial statement for both your business and for you. Here is some information about surety bonds and the importance of financial statements in the underwriting process.

Understanding Surety Bonds
Surety bonds are legally enforceable, binding contracts through which the surety company guarantees that the principal will perform its contractual obligations and comply with the relevant laws and regulations. A surety bond is not insurance. It does not protect the bondholder from liability if claims are filed. Instead, the surety company will only step in and pay claims when the principal fails to do so. The surety company can pursue reimbursement for any unpaid claims by seizing the principal’s collateral or filing a legal action. While surety bonds do not work like insurance, they do serve as guarantees of performance and are required for many businesses before they can secure licenses or enter into contracts.

Financial Statements When Applying for a Surety Bond
When you apply for a Florida surety bond with a surety company, you will have to submit a number of documents to support your application. The approval process works similarly to the way in which the credit approval process works for businesses when they apply for credit. The surety company will complete an underwriting process to determine its risk if it issues a surety bond to you. Some of the types of documents you might be required to submit include the following:
• Resumes of all key personnel
• Organizational chart
Financial statement for your business
• Personal financial statements for major shareholders
• References
• Bank letter
• Bank statements
• Tax returns

What Is Included in a Financial Statement?
At a minimum, your financial statement should include a balance sheet showing your available working capital, your assets, and your liabilities. These three components help the surety company to understand what your company owns and its outstanding debts. You should list your assets in order of how easily they can be converted to cash and divided into current assets and long-term assets. Current assets include those that can be converted into cash within one year. Similarly, liabilities should also be divided into current liabilities that must be paid within one year and long-term liabilities that must be paid after a year or longer.
The financial statement should also include an income statement. This demonstrates how the company has performed over time. Your income statement will include information about your business’s net profit or loss during an accounting period instead of being a snapshot in time.

Using a CPA Audit to Prepare a Financial Statement

One of the best ways to prepare a financial statement for surety purposes is to retain a certified professional accountant to audit your company’s financial statement and provide a professional opinion about its accuracy. An audit can help the surety company to be sure that your statement does not include misstatements or errors so that it can feel more confident in the information you have reported.

Metrics Surety Companies Look for in Financial Statements
Some of the important metrics that surety companies glean from financial statements include the following:
• Debt to equity ratio
• Available working capital
• Company’s and owner’s net worth
• Available assets that might secure the surety bond
• Your ability to meet the contractual obligations
• Work that you have not yet completed

The Surety Underwriting Process
Surety companies consider multiple factors during the underwriting process to determine whether or not to approve an application for a surety bond. Several of these factors are derived from your financial statements, making it important that your statement is thorough and well-prepared. A surety company will want to see that you have sufficient working capital to cover your obligations and to perform your contracts. It will also want to see that you have established a good credit record and that you and your business have good reputations. If you have poor credit, little experience handling projects of the proposed size, have little working capital, or have a problematic history, the surety company could deny your application.
The surety underwriting process also helps to determine the fee that you will have to pay upfront to get the surety bond if you are approved. Businesses with great credit, substantial experience, excellent reputations, and substantial working capital enjoy the lowest fees. If your business meets these types of criteria, your upfront fee might be as little as 1% of the maximum amount of your surety bond. If you are approved but have less experience, a lower credit score, or marks on your record, the premium you might be charged will likely be much higher.
Getting a surety bond is a necessary evil for many different types of businesses. Depending on your industry, you might be required to be bonded just to get a license so that you can legally operate. Making sure that your finances are in order and that you have established a good business reputation will make it likelier that you will be approved. Once you have a surety bond, it is important to operate your business ethically and fulfill your contractual obligations on time to avoid claims against your surety.



Transact365 launches seamless cross border payments in India




  • Transact365 enables merchants to transact locally in India
  • Merchants can partner directly with Transact365 without needing to source local partners
  • Transact365 offers two local solutions – Unified Payments Interface (UPI), and NetBanking 


UK-based fintech Transact365 has added local India payments for merchants.  By using Transact365’s gateway solution, merchants can access new opportunities in India without having to form local payment partnerships or establish an Indian company. The move ensures merchants now have access to over one billion Indian-based consumers enabling them to pay faster in a familiar way.

Transact365 offers two local solutions tailored to the needs of the Indian market – Unified Payments Interface (UPI) and NetBanking.

Developed by the National Payments Corporation of India – UPI is an instant, real-time payment system that facilitates inter-bank transactions through smart phone devices, powering multiple bank accounts into a single mobile application of the 274 participating banks. UPI facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions.

NetBanking is a unique payment method facilitating online payment transactions in India. When a user makes a payment via NetBanking, the payment is initiated via the Transact365  gateway which allows the user to complete the transaction with the merchant in realtime in local currency.

Transact365 has also established a local payment distribution allowing merchants to pay clients in India in real time with fully automated api connectivity 247 365 Days a year.

Transact365’s launch in India is the first in a series of big market expansions planned for 2022. Having already expanded into Europe, Asia and Australia, Transact365’s payment gateway system ensures merchants of all sizes and sectors can access fast-growing markets seamlessly and quickly.

Dan Fernandez, CEO of Transact365, said: “We are pleased to announce that merchants can now use Transact365 to process payment transactions in India. By utililising local payment solutions, Transact365 ensures merchants can now facilitate payments in India, with users able to confirm their payment in a matter of seconds.

“Our expansion into India comes at an exciting time for the company. With customer and merchant demand for payment gateways rising, Transact365’s revolutionary system ensures more businesses are able to access consumers in rapidly expanding markets. Importantly, our launch in India will soon be followed by similar market expansion announcements throughout 2022.”


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Europe’s first blockchain neobank, BENKER, opens for pre-registration




BENKER( is to become the first officially licensed blockchain neobank launched in Europe following approval by the Bank of Lithuania under the Electronic Money Institution (EMI) category. Now open for pre-registration, it is the first financial services provider in the European Union to operate entirely on blockchain.

The neobank will run on Natrix(, a purpose-built hybrid blockchain created for the financial sector to meet all GDPR, bank secrecy and regulatory requirements. BENKER will achieve the highest level of Compliant Client Autonomy, where users have complete control, autonomy and real freedom, assuring sustainability of the market where users and financial market participants are on the same level.

Viktor Bodnár, CEO of BENKER, hopes that the neobank will be a catalyst for fundamental transformation in personal finances, offering customers greater autonomy. On his vision for the future of the market, he said: “We’re introducing a new brand in financial services that can challenge the established order by extending existing legal and regulatory safeguards with the advanced technology-based guarantees achieved through blockchain. In obtaining our EMI licence we have been allowed to radically diminish client exposure to the actors of financial markets, and I see this as a move towards the ‘New World Order’.”

“By adding blockchain to the way in which customer accounts are managed securely, we are offering constant transparency, traceability and complete control over financial matters for our clients, creating the highest level of freedom. This is what we’re calling Compliant Client Autonomy and it’s an idea that is at the heart of BENKER.”

Following a two-year planning, development and application phase, and now with its EMI licences receiving full approval, the neobank will offer services for both individuals and SMEs, and a platform on which to buy and sell gold.

Bodnár finished: “We’ve worked hard to create a fully compliant and secure blockchain neobank, and I’m delighted that it is now going live in 2022. The result is a system in which clients and service providers are finally on the same level, and within all legal and regulatory requirements. This will make managing personal finances in the future more efficient than ever.”


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