There is no better place to look for new business than on the US Gov web site. There are over 25,000 contracts posted on any given day for small business owners. The US Gov is contracting out everything from buttons for US military uniforms to cooks for the federal prison system. Construction, remodeling, manufacturing, human resources services, gardening, painting, web design, IT services and computer applications are a small fraction of the multi-billion dollar US Gov contract awards.
Until you learn the language and the ins and outs of submitting a bid, and winning the bid, the learning curve can be time-consuming, however the rewards can make you and your company financially independent. There is not a single work day that goes by, that the US Gov doesn’t make some small business owner wealthy over time.
Small business owners, veterans, women owned business, businesses located in hud-zones, would do well to check out the set-aside contracts which only certain categories of American businesses can bid on. What this actually means is that the US Gov has set aside billions of dollars for contracts which only veterans, small business owners, and women owned businesses, etc can bid on.
The process of Invoicing the U.S. Government and getting paid in 30 days is fast becoming easier and more efficient, yet there are small companies who need a substantial amount of cash flow to meet payroll in two weeks rather than four weeks.
Congress voted on the acceptance of accounts receivable funding for Gov Contractors who have Gov Invoices, but little cash flow. Once a company Invoices the US Gov, they can actually receive up to 92% of the total Invoice amount from a qualified Lender within days, IF they have previously set up an Invoice Line of Credit or Factoring account with a Lender who can do business with the US Gov.
For corporate Invoice Factoring or Accounts Receivable Financing, it can take anywhere from 24 hours to 72 hours, US Gov Invoices takes longer, much longer. This is why US Contractors are encouraged to set up their Invoice Lines of Credit, “before” they actually need the funding. (The best time is right before or after you win the bid for the contract)
In some cases, small business owners can work out the timing and the budget and don’t need Factoring, Invoice Lines of Credit or Accounts Receivable Funding (different words meaning the same thing) But what happens is “opportunity.” The small business owner is confronted with an opportunity, which he/she can only act upon if the cash flow is right. Invoice Lines of Credit provides immediate working capital without incurring debt.
There are Lenders for small companies who are having growing pains. Credit is not an issue. The door of “opportunity” can close as fast as it opens, and when cash flow is a concern, having the right Lender in your rolodex is key. Your credit or your financial statement, are NOT important. Funding is based on your client’s credit rating, not yours.