Government Contract what to consider
It can be a great feeling to be awarded a government contract, but it can also be mind blowing. Let’s face it, If not handled right it can be quite expensive to complete assigned jobs.
That is why government contract financing is a smart choice. You are at the crossroads of your business, a big jump, an opportunity to grow, but heres the monkey wrench, do you have the adequate cash flow to fulfill the contract?
Big government contracts use up all your operating capital, it can pay 60 or 90 days later, and cash flow is short in weekly payroll and fixed overhead… some businesses would be forced to pass up the contracts and this great opportunities.
This is where we can help you by using government contract financing also known as invoice factoring. Moon Financial will able to do what most banks wouldn’t consider; use your commercial invoices as the only collateral to obtain working capital you need to run and grow your business. Utilize this cash flow funding for:
- Inventory
- Make payroll
- Pay suppliers
- Hire more employees
- Grow your Business
Understanding the government contract process Bid Submission Part of your Planning and Research step is to understand the overall market for your service or product, and your target agency’s history of how it prefers to buy your service or product. This research will come into play when crafting your bid. One of the most important things to keep in mind is that the lowest price is not always what your prospect is looking for. More often than not, agencies are looking for experience. Government customers value positive past performance, previous government experience, and stability. The government wants to trust that you’ll get the job done more than it wants to save money. If you can’t get the job done, that will cost more in the long run.
Oral Presentations Your submission process does not end when you submit your bid. There is a possibility that you may be asked for more information. One of the things you may be asked to do is to give an oral presentation of your bid. If the agency has the decision narrowed down to two or three bidders, the bidders may be asked to provide an oral presentation to go over details of the bid and describe how the work will be accomplished. Oral presentations are more common with RFPs, but it is nevertheless something every vendor should be prepared to deliver.
Government Contract Award Throughout the decision process the government agency may continue to ask for more information. This is a good sign – it means they’re interested enough to know more. Keep providing whatever the agency needs. At some point, a decision will be made and the contract will be awarded.
Next Steps Once the contract is awarded, you’ll be in regular communication with the awarding agency – to set up initial meetings, deadlines, and any other details that still need to be ironed out. Remember, government values past performance above almost all other criteria. If you win a bid, do a great job – knock it out of the park – so you can use that agency as a reference of past performance and continue building your government business one contract win at a time. Now Call us Submit an application for Government Contract Financing with Moon Financial.