Having the resources to win a battle is as important as the plan for victory. Nobody goes into conflict expecting to win without enough ammunition on-hand and logistical support to resupply as necessary – but many small business government contractors go into “battle” without enough cash flow to beat the enemy and overcome unforeseen battlefield changes, like the market fluctuations caused by a pandemic or a government shutdown.
Cash flow is the ammunition which allows your company to secure and fulfill a contract. Without it, your company may not deliver on time – and will take heavy financial losses because it wasn’t properly equipped to accomplish the objective. This will cost you money and reputation now, and possibly prevent you from scaling to take on larger contracts. You could be stuck in place, scrambling to recover, while your competitors achieve tactical and strategic advantages which come from adept cash flow management.
One common way to secure strategic cash flow is through securing a loan or a line of credit. However, it has to be done right; a loan that’s too big or too expensive is like bringing the wrong kind of ammunition on a mission. You can’t get much use out of it, it’s heavy to carry, but you can’t just ditch it because you signed for it. Likewise, unless you have the right strategy, even the right debt can be used poorly – such as to pay off old debt instead of using this new “ammunition” to secure forward-looking objectives.
On the other hand, the right debt tool with the right debt strategy will give you the cash flow to accomplish your mission and seize new ground. You’ll be able to purchase the product to complete your contract, secure new assets, and hire new staff to take on bigger contracts.
The final step to increasing cash flow through the use of strategic debt is finding the right partner. Not all banks are flexible enough to provide you with the loan that’s ideal for you, and predatory lenders are always looking to saddle businesses with bad debt. At Parabilis, we’ll get you the cash flow ammunition you need now and be flexible enough to meet your changing battlefield needs. We’ve been where you are, and we’re ready to equip your business with mission-critical cash flow. Contact us today to learn more.