Treasury Management for Business Banking - GovCon：商业银行财务管理govcon.pptVIP

* * * Financing Alternatives For Government Contractors Richard Lewis Financial Engineering Counselors, Ltd. (A Veteran Owned Small Business) Falls Church, Virginia 703.992.8988 richard@ * “While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second ….” /financing/basics/basics.html * Your company has landed a new Government contract, one that will result in a significant increase in revenues. However, In order to fulfill the contract you must commit to additional: People (payroll) Training Materials Related Costs * Timing: Before payment is received from the government you will want WORKING CAPITAL to cover commitments. How can you gain/obtain the cash you need beyond utilizing: * The Challenge: Loans from family and/or friends Equity Injection: But raising capital generally is Expensive Takes too long to meet short-term contract requirements Requires an ownership participation Credit cards Delayed payment to vendors * Solution: Planning! * Planning: Minimize risk of having to scramble to raise enough capital to ramp up for future major contracts: Internal business development forecasting should identify and signal situations to senior management allow for proactive review of significant operational, personnel and financial impacts * Planning - Things Often Overlooked Allow for contract negotiations: Invoice payment terms Extended delivery dates Partial payment upon order placement Progress payments based on specific performance criteria* * Planning: Prepare business summary (financing request - loan application) Nature of business/company profile Market niche and reason Management brief summary Income Projections Financing request ($ and terms) Use of proceeds * Existing Bank or Lender - If your company has an arrangement with a bank or lender, approach bank or lender as far in advance as possible a