[smartweb2000]

I have a client/business owner that have been in business since the end of 2014. This is an Electrical Company and is growing rapidly. They are looking for a line of credit or a term loan. All of their business are government base only. I have 2 year tax return and YTD P & L. Looking to see if can get 500K in line of credit if possible or more.

Did almost 4 million in business in 2016 and have a contract for the to be implement in 2 months for 3Million+ for the transportation dept- a govt contract. Between now and to the next 60 days will have over 4 Million in government contract in place. Looking to get max funding on the lines of credit. This company is on track to do over 7Million this year but needs a lines of credit or loan to do this as contract are in place. This company can do more as long as I can get them funding.

Is there a way to borrower base on the government contract? or what can be done?

Thanks

Kay

[Cfairbank]

Yes. But in this space the product suitability is one of the worst -- folks can factor government POs and, especially, AR, at single digit APRs. We are very active in this space and have developed a hybrid product for this industry (right-sized capital, lowest blended rate, suitable capital, but also the highest commission). Call Steve if interested; regardless, the product mismatch is so bad with government contractors, happy to have one of my folks give a run-down on the space because it is so different than what most MCA brokers are used to.

[RichardGerard]

Good Morning Kay,

There are ways to secure lines of credit against Government Contracts. I will reach out to you to discuss the nuances of the file, and the balance sheet, to get a better idea of what can be done- at the most competitive cost of capital to the client..

RG