Securing a contract with the federal government isn’t a task for the impatient or hurried. Though just about every small business wants a customer it knows will never go out of business, and therefore will always pay up. As providing products or services to the government can cost you in other ways. Completing the task of getting a government contract is an investment in time, patience, persistence and tolerance for bureaucracy, paperwork and alphabet soup acronyms like SAM, IFB and DUNS. But as most things with owning a small business, if everyone could do it then everyone would.
Want a contract with the government? Finance your business first
According to FBO.gov, the process of bidding on government contracts is quite different than say bidding on jobs for a corporation. You are going to be required to accurately answer a lot of questions and submit a number of forms. As such, it is best to get your business and government contract financing in order before you complete the bidding process. Some questions you might be asked may be related to how you’ll meet your payroll funding and hiring demands.
Government contract funding in general requires businesses have solid financials and cash flow because payment from the government is solid but slow (as long as 90-day terms). Before you secure a government contract, they will assess your company to make sure you have the stability and financial strength to complete the job. Poor cash flow or lack of solid government contract funding can hinder your ability to secure a contract from the very start.
Ninety-day terms? Get help by factoring government receivables
Before you even begin the application process, talk to an invoice factoring company about getting government contract factoring to boost your company’s cash flow. Account receivables factoring can ensure your company collects regularly on its invoices with current clients eliminating any payment gaps or shortfalls. Robust financials as well as a solid history of company performance is one of the key elements you’ll need before the government will consider your business for a lucrative contract bid.