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Residential Builders - How to increase Turnover Eligibility Limits for Builders Warranty Insurance

Turnover eligibility limits are assessed on key performance indicators that determine sustainability, liquidity and capabilities to complete current and future projects.

A contradiction in strategies may exist between turnover limits required to enable the business to grow and the tax/dividend strategies that will be discussed with the company Accountant without consideration to the impact these decisions can have on Builders Warranty turnover eligibility limit.

KPI's for Builders Warranty assessments are:

1. Profit Margins (Gross Profit & Net Profit)

2. Liquidity

3. Net equity

How to increase turnover eligibility?

1. Maximise profits instead of minimising tax

2. Retain earnings and build cash reserves


Retaining $50,000 in earnings could increase turnover eligibility by up to $1,000,000. Before you do your tax, talk with an Insurance Broker who is an expert in Builders Warranty Insurance, it's too important to take a risk on the wrong advice.

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