As the end of the financial year (EOFY) approaches, most businesses are focused on balancing books, lodging tax returns, and finalising their financial statements. But for companies operating in construction, infrastructure, or mining, EOFY is also a critical period to assess the health and strategy of their budgets – and their surety bond program is a key piece of those budgets.

Now, surety bonds aren’t just a compliance tool: they’re a core part of how capital-intensive industries manage risk, free up working capital, and meet contractual obligations. With that in mind, EOFY isn’t just about ticking boxes – it’s a strategic opportunity to review your bonding facility, identify inefficiencies, and set yourself up for stronger project delivery in the year ahead.

1. Facility Usage and Headroom

EOFY is an ideal time to assess how much of your bond facility is currently in use and whether your headroom aligns with your pipeline. Have you had to scramble to extend capacity this year? Were there projects you couldn’t bid for due to tight bonding limits?

This is the time to engage with your broker and discuss not just what your facility has covered, but what it needs to support in the coming 12 months. A proactive review could be the difference between growth-ready and growth-constrained.

2. Financial Presentation Matters

Underwriters typically review your financials post-EOFY as part of annual facility renewals or limit reviews. Submitting timely, clean, and well-explained financial statements isn’t just good housekeeping – it impacts how much confidence the market has in your business.

This is especially important in today’s environment, where rising insolvencies and cost pressures have made underwriters more selective. Strong financial disclosure can support better terms, improved limits, and faster turnaround on urgent bond requests.

3. Clean Up Outstanding Bonds

It’s not uncommon for businesses to have bonds that should have been returned months ago still sitting on the books. EOFY is a good time to review the register and follow up with principals on bond releases, especially for completed or long-dormant projects.

Holding unused bonds ties up your facility, inflates contingent liabilities, and may complicate credit assessments. Clearing these out can free up surety capacity and improve your standing with both underwriters and lenders.

4. Align Bonds with Cash Flow Strategy

In the lead-up to EOFY, many businesses are focused on liquidity. Surety bonds offer a capital-efficient alternative to bank guarantees, and using them more effectively can have a real impact on working capital.

If your business is still relying on bank guarantees backed by cash or property security, EOFY is the perfect time to explore whether surety can offer better flexibility and less balance sheet drag.

5. Start the Conversation Early

EOFY may seem like a deadline, but in the bonding world, it should be a starting point. Engaging early with your broker (that is, before your financials are finalised) allows time to plan, pre-empt issues, and ensure your bonding strategy supports your commercial goals.

This is especially relevant for businesses targeting larger projects, navigating market expansion, or recovering from a tough year. The earlier you engage, the more options are available.

At BCS Broking, we work closely with clients to ensure their surety program isn’t just reactive, but strategic.

From reviewing facility performance and managing underwriter relationships to clearing outdated bonds and identifying capital efficiencies, we help businesses approach EOFY with clarity and confidence.

Now is the time to act. If you haven’t yet reviewed your bonding strategy ahead of EOFY, we’re here to help.

Reach out to us today to book your EOFY Surety Strategy Review.