So often, early stage and fast growth companies need cash flow and liquidity but think they won’t qualify for receivables financing because they have government contracts. But that’s not the case at Prestige: we fund federal, state and municipal receivables.
It happened again today as I was speaking with my friend Joe Lear at Shark Branding (of Shark Tank fame). He had a client he’d been trying to help for weeks but was frustrated in finding traditional financing. Plus, he was afraid the client’s contracts with state and municipalities would kill any receivables deal. When I assured him it would not, we immediately set up a conference call and Prestige was able to help his client get the liquidity he needed.
Why are government contracts such a big deal? One problem is they can use up all your cash to get started providing products or services. Then they take a long time to pay your invoice because of bureaucratic processes and approvals. Another problem is that not all lenders understand the nuances of financing government receivables and assignment of claims (the law regarding the process for assigning the payments under a federal government contract to a financing institution.) At Prestige, we understand government payable procedures and we know how to work with them to collect payment.
Later, Joe said to me: “The best help I could give him was getting on the phone with you! You were the most refreshing call I had today. While listening to you speak to him, I learned more about what you did and how your easy style makes clients comfortable. Even though I thought that I knew what you did, I really learned so much more. A great benefit is that once approved the client has the ability to sell invoices when they want to; there are no monthly minimums. So if you need it you can use it but you don’t have to use the funding all the time. That saves the client money and gives them control, which my business owners like.”
Don’t let financing get in your way of taking advantage of new opportunities with government contracts – they can result in sale growth and a boost to your bottom line. The kind of financing Prestige provides can be the solution.