We Designed the CMB Bonding Department to Solve the Problems Most Brokers Ignore
There is a problem hiding inside most bonding programs that nobody talks about.
It shows up when a project comes to market that a business is built to win, and they cannot bid on it because their bonding capacity does not cover the job. It shows up when a bonding facility has not kept pace with the growth of the business behind it, leaving capable contractors on the sidelines of opportunities they are fully equipped to deliver. And it shows up in the slow approvals that cost bids at the worst possible moment, when timing is everything and the window to compete is narrow.
The problem, in almost every case, is not the business. It is how the business is being structured and presented to bonding markets.
The Question CMB Kept Asking
CMB Insurance Brokers has been operating as a privately owned Canadian brokerage for 40 years. Over that time, the team has noticed a consistent pattern. Businesses with strong track records, proven project delivery, and healthy balance sheets would come in feeling stuck. Their bonding facility was not growing with them. They were bumping up against capacity limits that did not reflect what their business was actually capable of. And nobody had ever told them why.
Surety companies set bonding capacity based on how they evaluate a business — its financial statements, work in progress, experience, and overall position. The stronger that picture looks, the higher the capacity and the better the terms. But most businesses have never had a clear conversation about how bonding markets are actually viewing them or what would need to change to improve that picture.
“Two similar businesses can have very different bonding capacity depending on how their financials are organized and presented. Most businesses have never had that conversation with their broker.”
“The way your financials are structured and presented to bonding markets determines your capacity,” says Sanjeev Saha, CPA, CA, who brings over 30 years of finance and executive leadership experience to CMB’s bonding team, including years as CFO for multiple small and mid-sized companies. “Two similar businesses can have very different bonding capacity depending on how their financials are organized and presented. Most businesses have never had that conversation with their broker.”
That observation became the foundation for something new. CMB launched a dedicated surety and bonding department built around a simple but powerful idea: bonding capacity is not fixed. It is a reflection of how a business is structured and presented to surety markets. Change the structure and presentation, and you change the outcome.
More Than Placing Bonds
Most brokers place bonds. They have access to surety markets, they submit the paperwork, and they issue the bond. That is a service. But it is not a strategy.
CMB’s approach goes further. The team combines deep bonding market expertise with CFO level financial analysis to understand exactly how surety carriers are evaluating a business and what needs to change to improve its position. They work through a client’s work-in-progress reporting, year-end statements, and balance sheet to make sure the bond the business needs is the bond the numbers support.
“Bonding decisions get made upstream of the bond,” says Michael Kroll, who brings over 20 years of experience in commercial risk to CMB’s bonding practice. “By the time most businesses are talking to a surety, the important decisions have already been made in the financials. You need a specialist who will bring more value than just issuing bonds.”
“By the time most businesses are talking to a surety, the important decisions have already been made in the financials. You need a specialist who will bring more value than just issuing bonds.”
Over two decades working alongside business owners, CFOs, and operational leaders in commercial risk, Kroll has seen the same story play out again and again. Capable businesses held back not by what they could deliver but by how their bonding program was structured. Collateral requirements tying up capital needed for growth. A bonding facility that simply did not reflect the strength of the business behind it.
CMB’s surety department aims to change that.
What a Better Bonding Program Actually Delivers
When a bonding program is structured correctly, the results are tangible. A higher facility to pursue larger projects. Better terms and lower premiums. Reduced reliance on personal collateral. Faster approvals when timing matters most. And the confidence to bid on the work a business is built for, knowing the numbers will support it.
Getting there does not require a dramatically different business. It requires a different approach to how that business is structured and presented to bonding markets. Beyond the bonding program itself, CMB offers financial analysis and benchmarking, fractional CFO services to strengthen financial processes and reporting, and connections to traditional and alternative lenders to create financing solutions that support long-term growth.
Find Out Where You Stand
CMB is offering a free bonding benchmark review for businesses that want to understand their current position and where improvements can be made. There is no obligation. Just a clear picture of where you stand and what is possible.
To book your free review, reach out to Michael Kroll directly:
MichaelK@cmbinsurance.ca
825-404-7520
Find out more on our Surety & Bonding page