Getting a government contract is no mean achievement, congratulations! But now, how are you going to fund this lucrative contract while what you have isn’t enough to pull a quarter of the project?
Let’s find out ways you can finance a government contract after winning it.
- Finance through the Small Business Administration (SBA)
Given that the SBA is a government loan project, it is the best place to seek financial help when you win a government contract. The SBA has various loan options that will perfectly fit your needs. They will give you a loan proportional to your company’s size, the government certification you have, and the length of your loan. Other loan factors will also be considered.
- Asset-Based Financing
Through asset-based financing, you can easily secure enough funds for your account receivables. They come in the form of regular term loans or lines of credit. It can be a great option if securing a traditional bank loan is a challenge for your business.
- Inventory Financing
You can have your existing inventory assessed by the financiers to help value the amount of loan you can receive against them. This type of loan gives the financier the right to track your inventory movement. It can be an expensive financing method, so only run to it if it’s the last resort you have.
- Go for Microloans
A micro-lender will give you small business loans that are capped at $50,000 to help you finance your growing business. If $50,000 is an amount you can use to execute the government contract successfully, it can be a perfect option for your contract’s funding. But if it is insufficient, you can consider combining this loan with another type of loan or financing option to fund your contract fully.
- Sales Performance Factoring
This is where you use your existing sales history to finance future purchases. The finance company will use your credit card sales history to process a loan for you. They will then recover an agreed amount from your credit card sales every month.
Finance Your Government Contract Today
With the above financing options, you can easily execute your government contract within the scheduled time. Contact Magic Funding Solutions today and book a befitting loan for your contract.