Every day, Parabilis supports America’s small business government contractors. These people are often former public servants, helping our government provide for the country as civilian employees or on the front lines in the military.
Our values match theirs – integrity and honesty, and a desire to serve this great country. And it is with these values in mind that loans against Work in Progress (WIP) collateral rewards small business owners who have completed part of the work for a contract but have not yet been able to bill an invoice to their customer.
Work in Progress, or WIP for short, is designed to provide clients greater access to capital, which is critical when on-boarding employees to a new contract as it allows you to borrow before invoicing your customer. Borrowing against WIP is optional but when used can greatly increase the amount you are able to borrow.
Here’s an example: You have one firm-fixed price contract where you are billing $100K per month. For each day that goes by in the month, you accrue WIP that you are allowed to borrow against, and Parabilis will lend you 50% of the WIP you have accumulated. For example, if you bill your customer on the 1st of each month and you wanted to borrow on the 15th of April, you would have accrued $50,000 (15 / 30 days in April X $100K) in WIP, of which you could borrow $25,000 ($50,000 X 50%). This is all collateral you can access today, tomorrow, or anytime you need it.
If you’re a small business government contractor who is doing great work, has money coming in soon, and needs help getting through the next few weeks, give us a call or shoot us an e-mail. Let’s get your hard work paid off through a line of credit.
Contact us today to learn more.