When small businesses have a need for money, the most common next-step is to apply for a loan. What many don’t realize is that they have capital readily available to them in the form of outstanding invoices. In fact, the process of accounts receivable factoring has many favorable benefits over traditional financing methods, particularly in the case of government contracting. Let’s take a look at a few of these benefits and how invoice factoring services might be the ideal solution to your business capital needs.
Dependable Cash Flow
You can’t win a government contract if you don’t have the financial means to fulfill your bid. Don’t miss out on that upcoming RFP due to lack of positive cash-flow to back it up. Government contract financing is fast, easy and cuts out all the red tape involved in getting a loan. You’ll have access to the money you need when you need it, without having to take on additional debt in the process.
Many small businesses feel it’s impossible to compete with larger organizations, particularly when it comes to bidding on government contracts. By working with a reputable invoice factoring company, you can step up to the plate and play ball with the big dogs. Better yet, you can do so with the confidence that comes with knowing you’ve got the funding to back it up.
Hire the Best People
Anyone who has been in business for even a short amount of time knows how important it is to hire a qualified staff of skilled, dedicated workers. Attracting and recruiting top talent is only half the battle. You also have to make sure you’re taking care of their needs so they’ll want to stay onboard for the long-term. Leveraging your outstanding invoices for upfront cash can help ensure that once you’ve landed the right candidates, you won’t lose them due to payroll disruptions or other financial woes.
Think Long Term
One of the biggest factors in successful government contracting is proper preparation ahead of time. You need to know what types of contracts you’re best suited for, how and when to best position your offer, and what bid amount would be most likely to help you come out on top. Having a plan in place for financing is a significant part of this preparation. Plan ahead, research invoice factoring as well as reputable factoring companies now. It will give you assurance that once the bid is won, you are set with your financing needs.
Successful small business professionals value honesty and choosing an invoice factoring company is no exception. Not all providers are created equal, but if you do your homework, you can end up with a partner that provides this high level of transparency. For instance, our government contract financing services do not include any monthly minimums, and there are no hidden fees to worry about. It’s a level of trust that is rare in the factoring industry.
If you’re a small business that’s considering entering the world of government contracting, it’s important to know all of your options ahead of time, including the best way to finance your bids. Invoice factoring can provide the working capital you need to confidently throw your hat into the ring and emerge victorious.