Supporting Government Contractors
Career Funding to Government Contractors
Invoice Based Line of Credit
The first and most simple way to finance a government contract is to use your current invoices as collateral to support a line of credit. With the government requiring monthly invoices, you can cut down the amount of cash outlay by financing your invoices after they have been submitted and approved by a contract officer. By doing so, you can accelerate cashflow by 30 days since you no longer need to wait your net terms to be paid. When your invoice is paid, the balance you owe for the advance is paid back, resulting in no additional debt owed at the time of repayment.
If speeding up your cashflow by 30 days isn’t enough, you can access a payroll funding product to support the initial (and future) invoices before you are able to submit your first invoice to the government. This is an important product for contractors to know about because it not only helps to mobilize new contracts, but you can support much larger contracts. This product allows a contractor to bid on larger contracts with more FTE’s and take advantage of proper capitalization through payroll funding.
In addition to payroll support, many government contracts require a company to spend money above just payroll to get a contract started. We often see contractors that need employees to travel to specific locations, purchase equipment, supplies, etc… which can add up quickly. Contracts will typically allow for the cost of mobilization to be included in the first invoice or it will be divisible in equal installments over the contract base period. In both scenarios, a specialty finance company can provide funding to mobilize and collect the money back in accordance with the contract.
We are business owners and understand the importance of strong and reliable financial partners. Companies need partners that add value, provide top notch customer service, and take the time to understand their business. Here at GillmanBagley we pride ourselves on being that partner. We specialize in working with government contractors and understand the value of a contract. While banks look backwards at financials, we look forwards at the award. This allows us to fund up to 100% of billable payroll, help mobilize new awards, and level out working capital.