All businesses need capital to succeed and there are many sources for business funding. Traditionally, businesses owners turn to banks which are great sources of capital if you meet their requirements and restrictions. Unfortunately, banks seem to favor businesses that do not need money, which is good to know. The best time to develop your banking relationships is when you do not need funding and before you have an emergent need.
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Many business owners self-fund their businesses with savings and credit cards. Some use retirement savings betting on themselves but possibly putting their retirement in jeopardy. Oftentimes a business owner may have their personal and business finances so intertwined that, if their business experiences any financial difficulty, their personal credit begins to suffer. It then becomes difficult for them to get mortgages and personal car loans.
There are other funding sources, but they can all present challenges for a business owner.
- Credit Cards
- Personal Loan
- Factoring/Receivables Financing
- Hard Money
- Traditional (tough to get funding)
- Limited usage
- Needs strong credit score
- Only available after invoiced
- Can lose their relationships
- Requires hard assets for collateral
When it comes to contracting, many subcontractors could become prime contractors with the right funding support behind them. Many contractors could pursue more contracts if they had the money to get new contracts started. With this in mind, GovBridge Capital, Inc (GBC) was started to offer Mobilization Funding, a funding solution customized for government contractors.
Mobilization Funding is early stage funding for the startup of you contract. GBC’s Mobilization Funding can be used for project specific payroll, supplies, travel, insurance and other project related expenses. The funding is short-term and is intended to help the contractor get started and stabilized until project payments can sustain the ongoing effort. Each loan is customized to fit the needs of the contractor.