Q&A to Grow By: Funding Your Growth
By Teresa Moon · 1 minute read
How do I know when I need expertise?
In our industry, the interest in "learning more" about funding happens most frequently either too early or too late. Both aren't the best timing, but it is always better to learn what is available too early than too late. By engaging with your funding and banking partners BEFORE you submit proposal for a contract award, and understanding what all of the costs to perform at the highest level will be, including what your staffing or purchasing expenses will be, will better position you in partnering with an option that can actually give you what you need when you need it. Qualifying for a loan isn't your only hurdle, quantifying what is needed is paramount to qualification standards for financing options.
How do I know what expertise is needed?
Ask questions. Talk to your banker to see if your status and your upcoming awards constitute your ability to get a line of credit from them. If they say you aren't ready for their lending options, ask them who they partner with for alternative lending. Additionally, ask for at least 3 government contractors they assist that have has a similar trajectory in the industry—both in niche work and utilizing alternative funding. Learning from another business owner what they did in your shoes could prove to be the best advice you will find.
Am I able to afford the expertise as a small business?
Valid question given all the expenses piled onto a small business. Our services are implemented as such to allow for growth and profit to be had while utilizing our line of credit. The sooner you see having access to the cash you need, when you need it, will allow the freedom to grow without fear of digging a hole financially.
I am happy to chat through any of this with you to expand the discussion to fit into the context of stages of growth with regard to access to capital. Additionally understanding what makes you bankable, how to increase your level of success through the bank options, sustaining bankability, and meeting the needs of hockey-stick growth and contract loss or government shutdown, for example.
At Parabilis, we specialize in providing fast, flexible and affordable lines of credit to small and medium sized contractors. Government contractors deserve a better financing solution than predatory loans and invoice factoring; and although it’s the most affordable option, many small contractors don’t qualify for bank financing. https://parabilis.com/