we have clian from a million dollars in annual revenue to firms that are north of a billion yeah this is only possible in gov if you're going to be in the space you better be relationship oriented be about you at Firs just because it's a small world out there you're going to have bills that you need to pay between billing the government and getting paid by the government and so we can bridge that Gap Matt stavish I'm so grateful that you're not only that you're here but because I'm very familiar with Republic Capital ACC you were the vice president and um back in 2013 when we received our first multi-million contract I was like Yay and then like two days later the government shut down and then I was like how do I pay these people what do I do then that's how I discovered you all so welcome so welcome thank you thank you for having us yeah we're a specialty finance company for government contractors and you know we try to help people out and kind of solving timing issue that the kind of working capital receivables creates in the gucon space what's very unique about government contractors especially on the services side of the house as you've kind of bring it to yourself is it's the only business legitimately where you can triple quadral double your employee count in like a week due to a new contract award that doesn't happen in any other business and so because of that very interesting short-term working capital issues are created um for government contractors and you know we step in a variety of situations but you know there's some uniqueness in working with the federal government is it it is by far the world's most complicated it definitely is and you know which in many ways they should be because it's primarily tax or dollars but how do you help because you know for those that may be watching I I didn't have any Capital it literally I went from two people to almost 10 people overnight I had no idea about payroll or cash flow I knew how to provide the services but I mean it was very new to Government Contracting at that point so how do you help yeah and we help startups that have very little collateral base and you know I think the key thing to keep in mind is you know a very simple example for folks you know you're going to generate a receivable at the end of the month and then that receivable is going to get paid 30 days later and you're going to have bills that you need to pay between billing the government and getting paid by the government and so we can bridge that Gap by financing or purchasing that reable and that's really where our product is a lot different than other folks so you can take a loan against that reable or which is a loan to the company so if you don't have a lot of assets or Equity it's very power to go out get comfortable imagine like getting a mortgage against the house doesn't have built yet right it's pretty hard to figure out so what we do the way that we live at the world is well you have this really great asset of an invoice will buy it and Advance you cash so we're going to look through you that's your contract we'll look through your company go this a really great credit over there we're going to finance that you people we're going to give you cash you'll make your bills you pay payroll and so because that there's no lean there's no personal guarantee there's no covenants there's no restriction on the use of proceeds because it's a true sale of your asset so you guys are you guys were really small got this new contract but you're generating this really great asset class you just happens to disappear every 30 days and with that we can buy that receivable and give you cash so that you can pay your folks so that's really our receivables financing product the other product that we have and we didn't have this but we're working with you is we have an unbuild receivables platform so if you imagine that window you started work on March 1st you're going to BU on April 1 we'll buy that receivable like Matt that's super good you buy my receivable on April 1st but I got like one or two payrolls to make before that so we will help with that too um it's it is a loan because there's no invo we'll loan 80% against build a rece so if you just today's March 4th started work March 1st going to build April 1 you got some pay walls in between you need to cover before you get to invoice we can bridge that Gap and that on that corresponding receivable the follows there after that's amazing and I mean is it super expensive because I know some of the Alternatives when you get money quickly the amount that you pay back is is very high you know kind of if you could maybe give an examples what is like an average fee for yeah it's a really good question so I'll preface that by saying everyone who's in the fin Finance space specializes in selling a commodity so this is a commoditized space and so you you can get money from a lot of different places and I say this for almost every service provider out there selling to a degree monetized prod so you know where the cost is I'm not your Dodger question about 1% so a little more than a bank a Lot l in ask or nonbank space but where we really differentiate ourself and where the cost becomes not as important degre is important but is are you picking up someone that's going to bring a value ad in addition to their service that's going to help your company when you need you know like hey you know do you guys know of a good teammate partner well since all our clients are dvcon we may know to introduce you to or you really want an attorney that's really good at particular good protest we know a bunch of attorneys that to good protest. because all of our Network are service providers so what is their cost of capitals import one thing you need to be you know Vigilant and that sort of thing but what is that service provider bringing you in addition that's going to help you grow your business expand your personal Rolodex that's going to kind of be that value at because it isn't come on you get your money from a lot of places you can get your money you get a CPA service from a lot of places and other firms so we that's kind of how we look at the world but on the cost side about 1% for bigger credits less and smaller credits more so that's very reasonable I mean it's an extremely reasonable rate and the relationship that you offer it definitely speaks volumes because I know I think we last used your services maybe 2013 14 15 something like that and here it is you know many years later and we're still in contact which speaks to the value that you're it it's not just like um a transactional relationship like you said the fact that you specialize in govcon you are really able to help walk people through the process especially those that are new and it's a small community goar and you know so many times that you've seen it and we've seen it happen we uh Coos in a nice small business and they go off and start their own company right and that company was with you went to a bank and then then they left now they need you because they're new and they're not quite ready for a backing relationship so it's such a small community and it is a very good you know ground for an entrepreneurial kind of set of businesses to be popping up because the government is a big spender they do have a small business set aside and in VAR subcategories of those set aside so it creates this ecosystem that's small but there's a lot of opportunity kind of always bubbling up so you have to be if you're going to be in the space you better be relationship oriented to be about you at froms just because it's a small world out there it is a small world out there and you know your reputation predes you and what's really important is you have to not only win the work perform the work you have to pay your team your contractors and anyone else involved because if you don't the word's going to spread and the agency May cancel your contract they they may cancel your contract you can get terminated and I think now and I'm not quite up all this that I think that if you are behind someone hasn't paid you can go to the co and direct payment there's there's some more mechanisms that have been built in there the great thing about being govern contract was government really pretty consistent payer um however all of you people that you pay know that too you I so the worst payment terms in the history of payment terms of pay pay because no really knows what that mean very and that in small business you said a bu well pay you when we're paid and more than likely paid when paid usually gets into a murky and somewhat a comtable conversations because it's like we know that you've been paid yes um because it's been you know 45 days or whatever it is so yeah there's bills that need to be paid um and the fact that the government is receptive to degree to those planes I think gives a little more onus on the primes who are paying those bills to be receptive responsive yeah definitely does sometimes you know the government will pay in 15 days but even though you still have that Gap like you said you may have a payroll in between maybe there's some unexpected expenses maybe you need to Prov you need to pay for materials you know my expertise is all around services so uh I can only imagine for those who are in construction or certain it NES that there's a lot that they have to a lot of payments and debt that they have to take on you know financing in general when the working capital receivable s is it's it's pretty simple there's a big bright line of when do you start execution on a contract and then the next bright line is when do you generate a receivable and in the services space between execution start and receivable generation that's an unbuilt Services we can do that that's not too tough to do but in like the products space so let's say we've been doing a lot of deals lately let's say you're going to do a mask delivery to F or you know DHS or whoever it may be then you need to pay for the mask to be shipped well that's a different type of funding but it's still before that receivable is generated and that would be a purchase order binance company and there's some really good ones out there we're great for those guys and bance receivable but it's all about how to you know bridge that gap between that start work to I generate the receivable and then from there it gets pretty simple um and depending if your services that's one type of an unu need and product is a different type and then construction is a whole of the bird because it got bonded and all that sort of stuff you know it's a puzzle it's a financing puzzle to solve on how do you kind of make sure that you get Capital at various stages in that life cycle of a First Capital yeah it is and it's great that you are there to help with this puzzle because you're again it's not just transactional here here's quickly how you get the money you know you offer so much more than that you know what are what are some of the sizes of the companies that you work with do you work you know is it can from the small to the large you know just kind of the number of employees and or maybe their annual revenu that would be helpful yeah so in our portfolio we have clients from a million dollars an annual revenue to firms that are you know north of a billion um but most of our clients are between 1 and 50 million an annual row and to put that in a monthly which is easier for most folks to figure out that's about a million dollar about $100,000 a month to be 1.2 million to you know about you know four or five million month in revenues that would be financed it's kind of our average client and then there's some some bigger ones in the past that we've had Sr was a client of ours years ago um as an example um before they became CS gdt yeah um but you know kind of but it's all using the same product it's just that that we buy the receivables no recourse no leader no Covenant um but they all they all go a contract so um and it we finance a bunch of so it's hard to put an employee count on there because if you have likea contracts typically you're you're billing less because you're not charging as much but if you're you know if you're got a bunch of software TS clear developers You're Building much more for those folks um and then on the product side of the house is kind of the same thing they're a little bit more lumpier in their revenues because it's more contract or purchase order based right um because they may get an order every other month instead of billing like a rece a Services firm you're going to bill every month um and so those kind of get a little more up and doubt yeah I tell our clients you know the limitation to your funding available through us would be your ability to win contracts not our ability to fund you that's typic typically the limiting R that's good your ability to win the contra tax which is great to know because I've come across opportunities there was one recently for 240 people and I thought how in the heck am I going to make that payroll because for you know that would we would go from 50 to 240 like that but it's great to know that as well as that your clientele ranges because I was under the impression it was other businesses my size and it's great to know that those with billion dollars in Revenue are also working with you which I think speaks again about just how you are how you operate and that you're you're really more of a partner yeah I mean those bigger firms use this for different reasons the smaller firm were they're looking for the like you know the SR the balance sheet metrics that we were going to generate was positive to the firm you know the example you just said on that big contract you know we would give a letter of financial capability to for you to include in your vid to be able to support you if you're way it put in solicitation number we've had clients go from 30 to 300 50 people a month and they use our unbuild product cover the payrolls and then you gener it's receivable and kind of a way you go you this is only possible in go to have that sort of growth which is great creates all these fun problems to solve we tell folks all the time there's three things that happen cont you want a contract y great problem solved or you want to recompete so you get the slash rates a little bit but yeah better the losing it or you lose your contract I mean generally you get those three things so you know the contract ramp up mobilization this isn't stressful but it just enjoy this ride because this that 30 45 day window working with Miss own's a lot of s yeah it truly is I mean I I remember it was like yesterday when I won that work and it's it had we're still working with them yeah I mean it's amazing you know it's amazing and so it it's nice to have that that comfort of okay if someone doesn't have that c cash flow that they can work with you because the objective is to win and for many the objective is to go from 35 employees to 335 wonder how am I going to make payroll and then people you know your colleagues may not know how to answer they don't want to tell you that they work with someone like you Matt and so it's great that you know you're here today to just share what you offer well and I think that's where you know we've bridged that app you know the yeah like do we have this chart do we show when we do financing presentations you know Bank capital is the cheapest a lot of people win that big make a contract like talking about they think we need to go get a bank and the problem is and this that they're regulating and so and they're they are the cheapest form of capital but when that growth doesn't fit that credit box right or the need of capital is outside the equity you have in the company because you just grew so much right that doesn't fit their box and so that we're doing is stepping in for the time period that's needed and typically you know the new contract R it maybe you know 12 to 24 months to give you that financial support and then if you choose to go to a bank you are going to hit their met be Bank look at interest rates now like Bank financing is so cheap you mean you do need to have certain qualifications to get it you know they don't make a lot if you look how Banks make they don't make a lot of money on loans so you got to give them a break you know if it doesn't fit their box it can't take the billion dollar risk to only make a couple you know 10,000 couple thousand bucks so that's where we fit in to kind of bridge that Gap to help people get over that next step in that next turtle on their growth and then we we've had situation where people are out of bank they come to us they win new contracts they do great they go back to the bank and then they come back to us when they that that that's happen many so we're kind of that bridge to to be that solution provider on that Journey for the serer and how does someone get in contact with you or if they're like oh my gosh I need this today like what's what should they do well we always say the today need should have done yesterdays um you know there's a lot of Finish Lines in life that are good at running across like if you're running a race right but the financing Finish Line we want to walk across that it's not good for your health or our health to run across that finish line so we try to encourage walking across the finan Finish Line a lot of easy ways to get in touch with us we can message on LinkedIn um we have a contact form on our website um emails I get like random text messages on my phone like oh I got you we got my your pH so we talk for sure so you know we try to get back to people in about an hour and set up a meeting to talk with them you know sometime that week uh but yeah playing a little bit you know we tell business owners and if you're Us in the bank that's great you should do that but just be prepared to run a parallel path because until you sign those documents right let's say you need funding on April 1st cuy and you're talking to us the back she like that's great you should do that like it's cheaper than us but here's the deal until you sign the documents with them if you come to me on March 20th and say I need funding in 5 days payroll this would have been super simple to just hey let's run a parallel P let's just get the documents in place just sit over here and do that and and as opposed to kind of like you know I talk to all the banks the area and you know we talk to you and we see it's too stressful like and you're going to you should be stressing out that like we try to encourage you know if you think that you're going to be back well that's okay on they're going to just just be prepared if they don't get it that we're ready to go I mean it's just and and then you get and then when you need funding overnight then you kind of get into the the merchant cash advance the online lender type model and there's a fit for that I mean to be clear I mean there's some good people that are it's expensive because it's risky and it's not expensive because it's not risky right um theyve all run their algorithms and it is risky so you know there's a fit for that if if the business owner's Verge you just just with use Capital how they're going to pay it back um but typically for government services company the the the structure of those deals are not you know ideal no and and you ultimately the small business owners is going to pay a lot to get the money because they need it now and it just you get in the cycle it's almost like a cash advance you just get in the cycle and I speak from experience I feel as if we have taken out money from every possible source that ever existed we're not doing that anymore thankfully um but there was a time and then you get in this cycle and every month it's like oh my gosh I have to repay how much and how much is coming in and then it's and it's horrible and so just taking that time like you said to understand that you you got to do this a little early and it may may not seem like it but earlier is better than ah I need it now I don't care if it's 30% interest you know yeah earlier is better in talking with you know either a firm like ourselves for a bank before you have the wi everyone will take the meeting so you know that's the biggest thing to folks is like people will take the call in the meeting and you go ahead I got this contract and it may happen in July and if it does I need to find couple people that I can call in April to start having those conversations with to get a proposal out we'll give a proposal to a company like hey you don't need us now but you need us if this happens in July so here's your proposal just in case and that even with a bank have those conversations now looking around the corner and talking to your Banker if you got a bank CL of credit to discuss this is what may happen in a couple months that is a great thing to do for your business and so you know and I know this the financing puzzles one piece of the gcon puzzle there's a lot of other things that own worry about but having those kind of look around the corner conversations with the provider is is a great use of time and is a great stress reducer for the business being overly communicative to try and get that stuff in place is just going to make it easier we've talked to companies like I'm going to go after such and such be like yeah that's really hard to find like for anybody and they'll be like what do you mean well you know and we got to go through it fine has just consider for but anyway having those or you know we talked to the startup two days ago like don't have any work going after this contract they drop in B okay let's talk through it yeah that's a very reasonable thing to do yeah it's smart to do that now instead of May 1 we need money May 4th very stressful so before we end what other you know kind of advice or tidbit would you like to leave with the audience especially those who are like hey I may need this I don't know if I need it I would say you know there's multiple things kind of happening right now in gobc con that people should kind of be aware one is you know the PPP program you know talk to your attorneys and CPAs about it you know there is some articles and thought leaders out there that have talked about if you have Cost Plus or tnm contracts and you took a PPT loan and you're went for forgiveness you you should be having conversation through CPA attorneys from what I've read and I'm neither so that's happening now and people should be thinking about what that is or isn't for their particular business ffp contracts from what I've read we should solve the conversation so I think govc cons because most smaller govcon just take PPP have those conversations with your kind of those key service providers in that group just to make sure that you're all buttoned up on whatever maybe Bey you have to take action you at least you're doing it pro and then I would say as you're looking to plan the year because right now we're kind of rfpc Devcon right you're thinking about what you're going to apply for or go after it's not too early to talk to your Banker or your Finance provider or reach out to somebody hey this may happen what are your thoughts could you be helpful here and now you've just checked off a box you don't have to check off DE um because the financing markets are kind of changing you know we're living 51 weeks ago the world hold stop right we're coming up at the unniversary from tomorrow so the mar the markets are a little bit different than they were even though cost of capital is lower the credit boxes and like the regulated institutions are different so just have those conversations now to start planning in your head oh this I'm going to call this happens they can do this they can't do that so this a plan to be digital not you know Vigilant you know like we talked about earlier like you know you make sure in govcon whomever you're working with on the financing side major in your major because you know this is the only business with a very complicated customer and the bank sector it's a little bit easier but in the nonbank sector like you know people do assignments of claims you need to work with people that really know your business and speak in those weird acronym based sentences that all go constant yes that's that is great advice because they need to know your business they need to speak your language and I can't thank you enough Matt for being on here how can people find you online where should they go to connect with you virtu um you can go to ma LinkedIn just Matt estabish find me public Capital Access or go to Republic Capital access's website um fill out a a contact form and it will come right to me um it's probably the easiest way to do it for people that are listening so or you can forward in my email or stuff I'll get back to one way or the other so yes he definitely will get back to you that's the best part if he's very responsive with speaks volumes to who they are as a company so thank you again for being on and thank you all for viewing and listening