Minority-owned businesses may have the ability to bid on contracts which other businesses may not have. In large part, this is because of the Minority Business Development Agency which encourages states, and municipalities to hire minority businesses to complete projects on their behalf. However, as a minority-owned business, you still need the financial capacity to allow you to make these bids. Minority Businesses and Banking ChallengesWhen you know you will be bidding on a contract, the first thing you do is ensure you have the staffing and materials you will need to complete the terms of the contract. Should a review show you will need additional staffing and supplies, you may then be forced to seek out capital to ensure you can successfully complete the contract should you win the bid. This is the time when small and mid-sized business owners often turn to their banking relationships. However, a recent article in the New York Times shows that minority business owners often face many hurdles when dealing with banks. In fact, minority businesses often find it impossible to develop long-term banking relationships. This leaves many facing unusual challenges when bidding on contracts, even when those contracts mean a stronger business. When a minority business is bidding on contracts, especially a government contract, there are numerous hurdles to overcome including showing how you are going to fulfill the terms of the contract. Many businesses are asked to provide guarantees, which often are not available for minority businesses. Therefore, working with a company like Capstone has many advantages whether you are bidding on a contract, or you have recently been awarded a contract. Discover the Capstone DifferenceAt Capstone, we have a process that allows us to work with both internal processes and outside private partners to help you gain access to much-needed capital. When you have landed a minority contract, we understand it could be 90 to 120 days or more before you see payment for an invoice you have issued. This is why we will help you customize a plan which works best for your company. These plans may include:
Finding the Right Balance for Your BusinessCapstone believes in relationship building. We know each business has different needs for cash flow. We also understand some business owners require capital to maintain their obligations, while others have sufficient cash to meet those obligations but wish to have access to additional sources of capital in order to invest in the growth of their business. This is why we take the time to understand several things before we develop a plan that suits your business. Some of our discussions will include:
Once we have discussed these matters with you, we will develop a comprehensive financing plan that is designed to help you meet your goals and grow your business. Not only can we help you meet your cash flow finances, in many cases, we can include long and short term financing options which will help you make long-term plans to ensure you are able to meet the goals you set for yourself and your business. Whether you are considering bidding on a new contract, or you have been awarded a minority contract and now need the capital to fulfill the terms of your contact, contact Capstone today at (212) 755-3636 and see what a difference having a strong relationship with a financing partner can make in your business. The post Prepare to Put Minority Contract Opportunities to Work for Your Business appeared first on Capstone Capital Group. via Blogger Prepare to Put Minority Contract Opportunities to Work for Your Business
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Capstone Capital Group, LLC
Capstone seeks to fund under-capitalized, competent businesses to sustain sales growth, preserve capital and ensure business goals are realized. |