For a contractor trying to grow their business, getting your first government contract is a big deal. It could easily catapult your business to the next level – provided you have enough capital to sustain your business until the government’s invoice is paid. While winning a government contract can be lucrative, because of all the red tape involved, the government can be notoriously slow in making payment.
Because taxpayer money is being used, that invoice will have to go through multiple channels to be approved and payment to be issued. This could take months and some contractors simply can’t wait that long to be paid. That said, there are still many benefits to taking on government contracts. They can provide your company with steady reliable work. once you’ve satisfactorily completed your first government project, it will be easier to obtain others. You could even become the government’s go-to-guy in your industry and land recurring government contracts. This will also boost your reputation within your industry. Many looking to use your services will see taking on government contracts as a testament to the quality of your work.
With the benefits it can provide, you wouldn’t want to pass up the opportunity to win a government contract, would you? The answer to that question is no. It just means it’s time to take advantage of government invoice factoring,
It can be difficult to take on the next project if a contractor has used all their resources on a government contract and is still waiting to be paid. Government invoice factoring can bridge the gap between completing a government project and receiving payment for it. This type of factoring works much the same as factoring does with other industries. Invoices are sold to the factoring provider who then assumes the responsibility of collecting on those invoices.
The difference is that government accounts are typically lower volume. Some factoring providers either don’t want to handle these types of accounts or don’t have experience dealing with government agencies. So if you’re planning to take on a government project, you should establish a relationship with a factoring provider who has experience dealing with government agencies.
Waiting for government invoices to be paid isn’t the only time invoice factoring can be beneficial. It can also be used to generate capital from other unpaid invoices, supplying the capital needed to take on a government contract. Invoice factoring can provide your business with a consistent base of working capital, allowing you to always have enough cash readily available to take on the next project. Turning down a government contract or any project due to a lack of capital can damage your reputation and send potential customers to your competitors.
Another benefit of factoring is the application and approval process takes place much faster than it does with a conventional business loan. Also, a business loan approval hinges on your credit score and financial history. This can be an issue for some small businesses that haven’t established a solid credit history. With invoice factoring, the provider will be evaluating your customer’s creditworthiness, not yours. Approval can be a cinch with government invoice factoring. Although payment of government invoices may be slow, payment is always received, so experienced factoring providers understand there is virtually no risk involved.
CapFlow Funding Group works with government contractors and may other industries to provide invoice factoring and other alternative funding solutions to keep their business moving forward. Whether it’s an unexpected opportunity like a government contract or everyday investment in business growth, it’s important to have the capital available to address it in a timely manner. While waiting for invoices to be paid, a business owner can miss out on a chance to move their business forward and push ahead of the competition. Invoice factoring can help you get the capital you need when you need it.
CapFlow Funding Group specializes in invoice factoring and works with a variety of businesses, large and small to fuel business growth. Our invoice factoring programs can benefit businesses in need of short-term working capital. We also partner with other lenders to provide funds for businesses that require financial services other than ours. Contact us today and find out how we can help you grow your business.
As 2019 winds down, small business owners are making plans for the new year. For some, those plans are focused on business growth. Technology has significantly impacted the world around us, resulting in a rapid change in the business sector. While the plans you made for this past year and years before may have been effective, you’re going to have to reevaluate and revise them if you want next year to be a success. There are many factors to consider and it’s important to keep pace with today’s constantly evolving business landscape. Developing solid business growth strategies includes financial forecasting based on predictable revenue, strategic marketing, and putting solutions in place to handle unexpected obstacles and competitor activities.
It’s easy to get excited when looking forward to the future of your business. However, one of the best business growth strategies is not to tackle everything all at once. You should make a list of all your planned growth initiatives and prioritize them. This involves determining which initiatives you can realistically take on each year without overextending your annual budget.
If you look back at some of the businesses that have failed in recent years, attempting to scale up too quickly is often the culprit. Rapid growth requires additional inventory, staff and more, all of which will take a big bite out of the budget. If those investments in growth don’t deliver a return quickly, a business owner may find themselves without enough resources to support that growth. Instead of taking their business to the next level, they could end up shutting down.
Successful business growth strategies involve conducting thorough research before opening an additional location or launching a new product line. You need to analyze local and regional demographics, spending trends and future growth of the area. It is also important to assess the area and industry competition. Solid research will help you decide if your plan for growth is a good investment or if you need to explore different business growth strategies.
Today, almost everything in our lives is technology-driven and business marketing is no exception. Think about how quickly that technology evolves. The computer, phone or television you bought just a year ago is most likely already been replaced by a better model. Technology has changed the way business is conducted and you need to make sure your marketing strategy has evolved as well. While some traditional marketing methods such as print and television ads still work, they aren’t as effective as they were in the past.
Sticking with traditional advertising will cause you to miss a large part of your audience. In addition to online advertising, utilizing customer and demographic targeting technology offered by Facebook and Google will not only help you reach a larger audience, but it will also help you reach the right target audience for your products or services
An annual budget is not a ‘set it and forget it’ component of your business. You need to constantly monitor the cash flow in and out of your business. Before you even think about investing in business growth, you need to reserve sufficient funds to cover all of your expenses. This includes a contingency or emergency fund. Unexpected expenses can severely cripple a business and in some cases, result in the business closing down.
Properly managing your business finances is crucial to sustain and grow your business. There are a couple of ways to do this efficiently, allowing you to easily keep track of your finances. You can use professional business software to record incoming revenue and outgoing expenditures as well as generate profit and loss statements. These statements will provide vital information to run your business and remain within your budget. If financial management isn’t your strong suit, consider enlisting the services of a professional business accountant.
Almost every business will at some point find themselves in need of additional working capital, especially during the development of business growth strategies for the new year. Business growth can put a strain on the budget. However, that doesn’t mean you can’t move forward with it. Traditional banking institutions may have tightened the reins on small business loans since the financial crisis of 2008 but there are other options.
Alternative finance companies are providing multiple funding options, many with less stringent requirements and significantly less paperwork. Many business owners have been hesitant to take advantage of these alternatives to traditional business funding because they’re not the norm but, just like everything else business, financing has evolved. Many of these options are flexible and tailored to the specific needs of a growing business. By not utilizing them to help fund business growth you could be impeding your own progress.
Need a little help funding business growth in the new year? CapFlow Funding Group offers working capital solutions to provide the funding you need to grow your business. We work with business owners across various industries to find the best working capital solutions to their businesses on track. Our team will work tirelessly to see you through to success. Contact us today!
