The most important thing to do if you find yourself in a hole is to stop digging.
~ Warren Buffett
It’s April, the beginning of the 3rd quarter of the federal fiscal year, and undoubtedly your acquisition process is priority #1! Right now you are running on all cylinders to make the best effort to earn the awards you’ve set your sights on for this fiscal year. As the results start coming in, are you prepared to perform?
As you secure your awards you most likely then start to lean into your financing relationships to plan for what lies ahead. If you find that your current financing option isn’t going to meet your needs for your work, it’s imperative that you know how to proceed so you can shorten the time between recognizing there’s an issue and finding the solution.
Here are 3 tips for finding the right option, at the right time:
Alternative Solutions
If your business is currently working with a bank for financing your government contracts, you should regularly engage your banking partner to seek references for alternative resources should your opportunities exceed their ability to assist your growth. Ask your banking partner who they work with in regard to alternative working capital, and have a conversation with them about what the process of supplementing your existing line would look like if you needed it. The best partners are willing to engage outside resources to provide you with what you need, rather than punt and pretend that it’s not a problem to which they can provide an avenue to the solution.
References
Don’t be afraid to ask to speak to a reference, or two, that can attest to the quality of their process and partnership. Anyone who has had a good experience with them should be willing to engage in a quick conversation discussing what the process was like for them and how helpful the supplement was to their overall ability to perform. Better to have these conversations early and often so you know just what to do and where to go for more information prior to needing it!
Loyalty
In business we need to do what is best for the interest of our organization. That is an unspoken agreement. However, I am a firm believer in loyalty, so when a partner of mine sends me one of their clients and trusts me to do what I can for them, I always do my very best to not disappoint the confidence they have in me. As a service provider, we realize we cannot be everything to everybody, but when we can help, we are ready to give our very best when called upon to do so. When a partner trusts us, we always stay loyal to the relationship. We partner with many banking institutions and professionals to assist companies that may not be a good fit for bank financing, and we encourage those companies when they come our way to stay loyal to the bank that referred us as a solution to any working capital needs. We can work together to subsidize each other’s services.
If you are looking for a strong partnership with a govcon-focused bank, reach out to us, as we partner with many in regions all over the U.S. that can assist your businesses in a way we can not, and vice versa. We are all in this together!