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The Cash Advance Option You Never Considered

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.

Competitive Advantage

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.

Transparency

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.

Government Contractor

Exposing the Myths of Small Business Government Contracting

Did you know that the U.S. government actually has a goal to award nearly one-quarter of its prime contracts to small businesses? Furthermore, Congress approves over $1 trillion in spending just about every year. Though this is great news, a good number of small businesses are still hesitant to get involved. Much of the resistance is due to a number of myths and misconceptions that are still being perpetuated. If you’re wondering how to get government contracts for your small business, here are some of these common misbeliefs and the actual truth behind each of them.

Myth: My Business is Too Small to be Competitive…

Truth: As mentioned above, the U.S. government sets aside a certain amount of money each year to specifically be spent on contracts with small businesses. That means for many contracts, larger organizations simply don’t qualify. When we take size out of the equation, the opportunities become much more attainable. (You can learn more about the various programs for small businesses here.)

Myth: The Lower Bidder Always Wins…

Truth: Sure, there will be times when another candidate is chosen based on the lowest price, but this is actually more of an exception than a rule. In fact, the Federal Government as well as state agencies have the right to award government contracts to whichever candidate they feel is best suited, regardless of the actual bid amount. Be competitive but confident in your company’s ability to provide quality goods or services, and you’ll have a very good chance of winning.

Myth: It Takes Forever to Get Paid…

Truth: Despite the horror stories you may have heard about on the news or read about in the paper, most government contracts are paid in a very timely manner. In fact, the average turnaround for remittance of monies owed is around 30 days, sometimes even less. Additionally, there are other options available to you when time is of the essence. For instance, government contract factoring allows you to collect what’s rightfully yours upfront without the hassle of waiting.

Myth: I’ll Spend a lot of Money and Time and May Not Even Win…

Truth: While government contracting does involve an investment of time, money and resources, the outcome isn’t nearly as bleak as you may think. In fact, a recent report by American Express OPEN found that small businesses seeking a government contract for three years or less were awarded their first contract in just one year and after only three unsuccessful bids. The old adage that “you can’t win them all” can be applied here, as with any other business dealing, but success is certainly not impossible.

Myth: It’s Way Too Complicated…

Truth: While there’s definitely a learning curve when it comes to understanding how to get government contracts, working with Federal or state agencies is really not all that different from doing business with other large organizations. It may take a bit of trial and error, but getting the process down to a science isn’t nearly as difficult as one might think. These tips should help cut down on the trial and error:

Tips to Writing a Flawless Government Proposal
Government Contracting- Rules You Need to Know
How to Bid for a Government Contract…and WIN
The Secret to Getting the Right Government Contract

If you’ve considered the possibility of bidding on a government contract but were hesitant due to one or more of the above misconceptions, the truths exposed above should help you make a more informed decision.

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