General Contractor Success Story
Prospect Pain Points
(from our initial Zoom notes)
Specializes in residential, commercial, remodeling & renovation
Husband is GC / Wife is Office Administrator
- Current CPA doesn’t get construction
- Wanted to know if we understood the WIP Schedule (of course we do!)
- Has strong need for bonding – $3M of P&P bonds needed quickly
Their Challenges
- No financial statements
- Does not understand how a surety bonding program works
- No Cash in the Company
- No Equity in the Company
- Dealing with high-interest Private Lender
Our Solutions
We drilled home: Cash is King! Fortunately they had. We recommended they immediately put “skin in the game” to create Working Capital and Equity.
They had the work experience. We introduced them to a Bonding Agent that we work with regularly. We prepared Review Financial Statements of the quality required by a Surety.
About a year later we introduced them to a Banker that understood construction. He took a pass. Two years later we revisited the banker. He gave them a $750K Line of Credit.
And of course, we know the WIP Schedule inside and out. We helped polish off the Excel Schedule they were using. They can now generate an accurate monthly WIP for the surety underwriter.
Today
This GC has a $10M bonding program.
Our financial statements and relationships with the Bonding Agent and Surety Underwriter contributed to increasing their bonding program. This helps them make more money!
They came up with the slogan: “Believe in the Platzer Promise.”
We are very pleased to be their Most Trusted Business Advisor!