Lecture Notes: Financing for Government Contractors

Introduction

• Discussion on bridging the financial gap between billing and getting paid by the government.
• Importance of relationship-oriented approach in the government contracting space.

Matt Stavish and Republic Capital Access

• Specialty finance company for government contractors.
• Provides solutions for timing issues in working capital receivables.
• Unique challenges for government contractors, especially with rapid employee growth due to new contracts.
• Focus on bridging financial gaps through receivables financing and unbilled receivables platforms.

Key Financial Solutions

Receivables Financing

• Advances cash by purchasing receivables, allowing companies to pay bills and payroll.
• No lien, personal guarantee, covenants, or restrictions on the use of proceeds.

Unbilled Receivables Platform

• Provides loans against unbilled receivables to cover payroll before billing cycles.
• Addresses the gap between starting work and generating receivables.

Cost and Value Add

• Cost is about 1% higher than banks, but less than other non-bank spaces.
• Emphasizes the value of additional services and relationship-building beyond just financial transactions.

Industry Context

• Small community in government contracting (govcon) space.
• Reputation and performance are key to maintaining and expanding contracts.
• Large firms can also benefit from receivables financing for different strategic reasons.

Challenges and Opportunities in GovCon

• Growth opportunities and stress of rapid ramp-up in employee count.
• Financial capability letters to support bids.
• Importance of understanding financing options before contract wins.

Advice for GovCon Companies

• Engage with finance providers early for proposals and planning.
• Be aware of the implications of government programs like PPP on contracts.
• Plan well in advance and communicate with finance providers for better outcomes.

How to Contact Matt Stavish

• Reach out via LinkedIn or through Republic Capital Access's website.
• Emphasizes timely communication and planning to avoid last-minute finance needs.

Closing Remarks

• Importance of working with knowledgeable finance providers in the govcon space.
• Encouragement to plan financing needs along with business growth strategies.