PVBS was joined by Matt Stavish, VP at Republic Capital Access, to discuss several financial options for Government Contractors. Whether you’re a start-up company with no collateral, an established company looking to augment collections and payments, or a company that is looking to create a joint venture and need capital without exposing the parent company to personal guarantee or cash, there were plenty of options covered.
Mr. Stavish reflected on the number of small primes winning outsized awards and the stress that growth can have on a government contracting company. In order to make payroll, government contractors can sell the accounts receivable invoices for a line of credit that allows the company to have a cash flow that would normally have taken thirty days or longer to collect. This capital management service gives companies the opportunity to fulfill employee pay without going into negative equity.
Government Contractors have a hard enough time with smaller margins, longer recovery times, and the will of the government agency as constant obstacles, but not understanding financial pricing models can cost a company more than they know. As an example, Mr. Stavish gave two samples of different pricing models and asked viewers to decide which option presented the best alternative for the company. Viewers were evenly split on deciding which option to choose, demonstrating that even financially intelligent people can be easily fooled by different methods employed by other financial institutions.
Interested in learning more? Download the full webinar below.