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What You Need to Know About Retention Bonds?

There are different types of bonds that as a contractor you will need to obtain in order to get approved for a public or private construction project. One of these bonds is retention bond. IT is basically a type of bond that ensures the contractor receives the full amount of agreed payment, without any fees or deductions. This bond alleviates the need for any possible deductions of retention. It also guarantees the obligations of a contractor to perform project works during the defects liability period of the construction contract.

If you are interested in obtaining a retention bond, visit drsbonds.co.uk to get more information about how this bond works and what you need to provide in order to obtain this bond. These types of bonds are not required by all industries. There are some specific industries where contractors are required to have a retention bond. These industries include construction industry, support services property development and facilities management.

In order to get a quote to know if you are eligible to get a retention bond or not, you will need to provide specific information. This information may include bond wording, bond application form, your financial information (bank information form and facility details), current order book and pipeline, budget and forecast accounts, last field full report and accounts, along with information about your managements and supporting balance sheet. Once you have provided this information, you will be able to get a quote from surety bond Management Company or from a surety bond brokers.

There is some important information that your broker will require in order to help you obtain a retention bond. This information include duration of works, contract type, bond release event, contract amount, beneficiary information, proposed bond wording, bond amount and site of construction project where he work will be carried out.

It is highly recommended to contact a reliable surety bond management company like DSR bond management in order to know more about what you will need to provide in order to get this bond. This bond offers great benefit to both contractor and employer. It is important to note that some employers may refuse to work with the contractor without a retention bond. So, make sure you do your homework about obtaining this bond before bidding on a construction project that you are interested to undertake.

In addition to these things, bear in mind that a retention bond comes with a cost. That cost depends upon a variety of reasons, such as your financial history, your eligibility to obtain a retention bond etc. If your financial history is very important because a good financial history can help you obtain retention bond at lower fee, while a bad financial history will keep you from obtaining a retention bond with good terms.

It is highly recommended to learn more about this type of bond to decide whether you should obtain it or not. For more information, visit drsbonds.co.uk. There you will find everything you need to know about retention bond.

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Signs that you need to hire an accountant

If you want your business to succeed, you need to know how to manage your finances. One of the major reasons why most businesses fail is because of poor financial management. No matter how skilled you are with making convincing ads, marketing your products and making good service, if at the end you fail at controlling and managing your finances, it would greatly affect the status of your business.

Remember that a business would likely to become successful of you are able to handle every aspect of it effectively; and as your business grow, you might find it hard to manage every aspect of it with just on your own. A lot of accounting firms around United Kingdom that offers bookkeeping services, www.goldhawkassoc.co.uk and www.mhumeandson.co.uk are just some of them.

 Here are some signs that you might want to check for you to know that you really need an accountant.

Not at all familiar with accounting

If you are having a hard time with completing your financial reports and you do not at all understand the different accounting terms then you have to hire an accountant.  He can teach you how to make your financial reports and could explain to you the different financial terms that you need to know.

Important tasks are being neglected

You might have some basic knowledge on accounting but this is keeping you from doing other important matters that needs your attention. You might have to talk and deal with new clients, or manage new markets but you are unable to do it because you are distracted with understanding more on managing your finances.

No idea on taxes

Paying your taxes is important. If you pay your taxes later than expected, you would be bombarded with fines and penalties, which would result to a great loss on your part since you are to a pay higher amount than expected. If you would hire an accountant, he would advise you to pay your taxes earlier, plus they could explain to you the tax credits and how you could avail tax deductions for your business.

Revenue is increasing but profit is not

If you are experiencing this problem, you definitely need an accountant. Using his skills, he would be able to track and determine as to where you commit an error in your finances which results to a low profit even though there is an increase in revenue. They could give an advice and ideas as to how you should cut your costs in order to gain a higher profit.

Rapid growth in the company

A growth in a company is such a great news, but a rapid growth also comes with a big responsibility for you need to hire new employees  and you will meet and serve a lot of clients, so you will now have a lot of things to keep in mind. If you hire an accountant, like in www.mhumeandson.co.uk, you will be able to focus more on your business and let your accountant handle the finances of your business.

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Top Ways to Avoid Insolvency

It’s a fact that up to three-quarters of new businesses launched every year, and many of them suffer that fate within the first five years of operation. The majority of entrepreneurs declare bankruptcy. However, before you need to contact www.bridgenewland.co.uk there are some basic steps you can take to help avoid insolvency. Here are some of them:

1. Reduce your overhead expenses
This is definitely one of the best steps to take if your company is having financial problems. It’s important to reduce the costs but not to the point that your company will struggle to operate normally. There are many types of costs that you could consider reducing. For example, advertising/R&D costs can be easily cut. Overtime and staff hours can be reduced, and redundancies can also increase overhead costs of your company. Meanwhile, while you’ll likely have to use long-term investment to grow your business, you should reduce your short-term investment costs. For example, one option would be to lease equipment rather than buy it.

2. Negotiate with creditors
Keep in mind that if you owe more than £750 they can petition a court to order that your company be liquidated. Before you become insolvent it’s important to talk with your creditors, and negotiate a payment plan that you could likely meet. If creditors would lose their money if your company shuttered will likely be willing to negotiate with you in order to get their money. Thus, it’s definitely worth a try.

3. Get professional advice
There are companies such as www.bridgenewland.co.uk that can help you to take steps in order to avoid insolvency. Receiving quality advice can make bankruptcy much less likely when you get help from the right companies. It increases the chance of turning your company around and getting back in the black. You should seek professional advice in certain situations, such as you’re unable to pay your debts, you cannot cover your payroll, you lack working capital, or you receive a court summons. It’s advisable that you act before any of these events happen. Getting some good advice can certainly help to avoid a lot of worse financial situations such as insolvency and bankruptcy.

4. Boost your cash flow
It’s not enough for you or your company to have enough capital. It’s critical that you have the have the cash on hand to make your payments when they are due. This is a key step to delay the need to file for insolvency with companies. There are a number of steps you can take to boost your company’s cash flow. They include negotiating regular payment s from your customers with long-term contracts, challenging late payments from customers, avoiding overtrading, and reducing unnecessary stock.

The bottom line is that if your company is having financial problems there are steps you can take in order to avoid insolvency and even more importantly, bankruptcy. Some of the options include cutting costs, increasing your cash flow, and getting some wise professional advice. Although taking such steps won’t necessarily ensure that you can avoid insolvency/bankruptcy, they can certainly help to improve those chances.

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What to Expect When Going Through a Liquidation

If you are considering the idea of liquidating the assets of your company it matters that you have a good idea what is going on and what is going to take place. You want to gather as many details as you can from www.bridgenewland.co.uk.  This is very important as this will definitely help make it a lot easier for you to determine whether this is going to be the right option for you. Understanding what the process involves and how it is going to affect you along the way is very necessary.

You will need to appoint the right professional that can address the whole process for you. You will need to find the right professional from www.bridgenewland.co.uk. You will need to seek out the service of an expert liquidator. A chartered accountant is going to be necessary to ensure that the procedures are facilitated right. Choose a recognized and qualified provider to assist you. Use this opportunity to ensure that the provider of your choice is going to be the right one to offer you the guidance that you need. 

It is important to understand that the liquidation process sis serious and it is immediate. It is important to note that when a trading company decides to go through the process, they will be closed down after the liquidation takes effect. All the company’s assets will be taken control of and they will be sold. This way, the numbers that will be secured after selling these assets can be used to cover the expenses that the firm is required to meet towards their creditors.

To the director of the company that is being liquidated, it is expected that he will submit the necessary credentials and papers needed for the process to commence. A history of the company will be needed along with the trading details as well. It is also important that failure of the company is going to be put in detail as well. He will need to offer a statement of the assets of the company and the liabilities. All the information concerning the shareholders should be included in the statement as well and any legal claims that were made against the company is going to need to be disclosed as well.

To the creditors of the company, the liquidation would mean that those unsecured creditors are not able to pursue any more legal proceedings against the firm and its properties. Creditors cannot continue or start to enforce any of its rights to the properties of the company as well. The only exception is when they are given the necessary permission from the courts.

It is important to note the effects of the liquidation to the employees of the company as well. Liquidation of the firm may have a serious effect on the employees of the firm. The liquidator can actually take over the processes of running the business. It will be the liquidator that will decide how the business is supposed to be handled. He will need to decide what needs to be done to the assets of the company to ensure that the benefits of the creditors of the company are successfully upheld.

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Advanced Payment Bond Insurance From UK Specialists

When you need to make an advanced payment to secure the future of your business, there are different ways that you can go about it. In traditional times, people would head to their high street bank and secure the money that they need. Unfortunately, during and after the crisis that hit the UK and the world, the banks are not as friendly as they used to be. Just as it is increasingly difficult to secure mortgage or simple bank loans or credit, securing advanced payment bond insurance can be tricky too.

When you need money to keep your business afloat, and you cannot get what you need from your bank, you may try to get money from taking out a loan. This however is not a viable option for many as the rates of repayment are very high if you need money for more than a few days. For these reasons therefore, you will find specialists in the UK that specialize in surety bond insurance.

When you need a bond, you can no longer simply rely on your bank for the process. You may be turned down by your bank, even if your credit history is intact. There are many reasons why you may be seen as a risky customer, and none of these actually reflect on the stability of your business or on the viability of the company you are running.

What you need to do when you need advance payment bonds, is turn to a third party for insurance. UK specialists in surety insurance will simply take on the risk that your bank is no longer willing to do, and when you use a company that works solely with surety and bonds, you can be guaranteed a standard of service that is simply second to none. You should avoid vague companies that do not seem to specialize in anything in particular, and use the services of the best UK surety companies.

Advanced payment bond insurance is something that all business owners will need at some time in their working life. When you have money coming in and going out, and you need a large influx of cash to get things moving in the right direction, you will need a bond to get things back on track. When you know that you will be able to recoup the money you need at the end of your project and add a profit on top, you are not a risk to the companies in the UK who specialize in these kind of things.

Never be put off by banks or other financial institutions who fail to secure your bonds and who turn you and your business away. There are companies out there in the UK who can help you and your business, and recognize the need for UK businesses to thrive and grow. Contact your advance payment bond insurance and surety insurance specialists today to discuss your individual needs for your business, whether you need a one off bond payment insurance, or if you want to regularly draw on funds that are available to you when you know where you should be looking.

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Important Things About Compliance with Performance Bonds

Performance bond is one of the most important requirements for biding on or obtaining a government a government project. If you want to apply for this bond or you want have already obtained it, make sure you are complaint with the current rules and regulations of the surety market. The rules and regulations change so quickly due to which some people may find it difficult to keep up with the changes and adaptation in the surety market. Here are some important things about compliance with performance bonds or retention bonds.

First of all, it is important to note that performance bond insurance is issued by Surety Company or a reliable insurance company. In order to make sure you are in compliance with the performance or retention bond insurance, bear in mind that these bonds fetch more demand among the applicants. These bonds also ensure the guaranteed performance from the contractor. These bonds provide assured obligation of the contractor to the obligor with regards to timely completion of contract. These bonds are the most required surety bonds among the contractors. These bonds are readily available USA-wide.

Other surety bonds don’t fetch more demand among the candidates. In fact, these bonds are more useful to the contractor, obligor and surety. They are also very useful for the people involved in the government jobs that require these bonds. These types of bonds can be obtained from the bonding or insurance company. These bonds are issues in order to assure the guaranteed obligation of the contractor with regards to the contract to be completed within a specific time and budget.

Performance bond insurance not only provides overage to obligor, but also it protects the subcontractor who supplies material and labor for the contractor. These types of bonds are mainly used in building and construction businesses or in real estate business or any contracts. These bonds can be obtained from the surety company. There is an application process that all applicants have to follow in order to get approved for these bonds. In order to initiate the application process, you need to contact a reliable agent or broker who can guide you through the entire application process.

In order to make sure you are fully compliant with the rules and regulations of performance bond insurance, it is advised to get familiar with the surety market. This can be done by looking at the current rules and regulations that are being in practice by the surety market. You can also get help from your broker or agent to guide you about all the steps involved in obtaining performance or retention bonds. A good understanding of this market can help you get approved for any kind of surety bond in the future without any problem.

On the whole, in order to stay compliant with the surety market, you should make sure you understand how this market works and what applicants and bond holders are required to do in order to meet the requirements of surety market to obtain bonds.

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