Empowering Entreprenuers To Grow Through Contract Financing

“In today’s economic climate, many growing firms, even profitable ones, are finding it more and more difficult to secure or expand working capital credit lines to support their government or large commercial contracts or purchase orders.”

Whether it’s a recent entrepreneurial acquisition funded by a venture capital group or private equity firm, securing a non-dilutive, supplemental financing facility, specifically for contracts or purchase orders, has often proven to be a challenge — even with a history of on-time payments, strong financials, and in some instances, even established bank relationships.

In many instances, Factoring or even an Asset-Based Loan (ABL) are not a solution, because neither is designed to provide funding to pay a supplier upfront to ship goods for a new order, or cover several payrolls on professional services contracts, BEFORE you invoice.

To be sure, additional equity rounds is the MOST EXPENSIVE way to fund new contracts and therefor not an option.

Provide funding to pay vendors UPFRONT to shop goods for new purchase orders, or cover weekly or bi-weekly payrolls for professional services or support contracts BEFORE YOU INVOICE.

Why Contractors Choose The Watson Group

Immediate access to working capital

Contract Financing is designed to provide UPFRONT FUNDING to mobilize new contracts, and provide on- going funding throughout the contract life cycle, both BEFORE and AFTER you invoice. Whether you have existing bank lines in good standing but growing too fast, or in a bank but either "maxed out or upside down", or are "un-bankable"and don't meet the bank's traditional lending criteria, Contract Financing could provide a solution for you. Our funding solutions also provide Contract Working Capital by converting outstanding invoices to cash, enabling you to draw funds when you need it, much like a bank line but WITHOUT all the covenants.

Customized financing solutions

We draw on more than a dozen specialized products and instruments to " engineer" a Funding Strategy to match your contract cash flow requirements including, Mobilization Funding, Contract Payroll Financing, Vendor Trade Credit Financing, Purchase Order Financing, Supplier Payment Guaranty Letters, Material Supply Financing for subcontractors, Co-Packer and Manufacturing Financing, Supply Chain Financing, Non-notification Asset Based Lines of Credit, 2nd Position Factoring, Account Receivables Revolving Lines of Credit, just to name a few.

Trusted guidance

With almost 40 years of experience in Contract Financing, we understand the challenges faced by growing contractors, and work with you to "navigate the waters". Much like a doctor, we take time upfront to understand your funding requirements, and address any issue that could impact funding approval. We then discuss funding options and alternatives, and develop a game-plan for moving forward. Your funding needs are not off the shelf and neither are our funding solutions.

Relationship focused

Along with an extensive knowledge of the process, our second most valuable asset is our national network of funding partners in all segments of the Contract Financing industry, including some who we have been working with for over 20 years. The integrity and trust in these relationships built up over the years, is often based on our unique ability to engineer "out-of-the-box" funding solutions, by managing the collateral interests of all parties, including our client, and looking at every deal as if it were OUR MONEY.

Transaction Engineering: Our Patented Four Step Approach

Our Transaction Engineering 4 Step Process is designed to ensure that both the structure of the financing and financing products are designed to meet your Contractor Financing Need:

Diagnosis

Based on the results of our diagnosis, we then develop a tailored financing strategy, structure, facility size, and funding products required. In addition, we also identify and develop a game-plan for addressing any issues that could impact funding approval, ie existing UCC filings, etc

Funding Strategy

We begin with a preliminary underwriting interview to understand your funding needs, objectives, timing , and any constraints .  We also review financial statements bank records contracts and other details to assess your business condition .

Lender Selection

Drawing on our national network of asset based lenders commercial finance houses and banks we select the optimal funding partners .  Our knowledge of lenders’ approval criteria documentation requirements rates and terms allows us to match you with the right provider .

Closing and Funding

We work alongside you and the lender from application through closing.  Our role includes preparing the funding package negotiating rates and terms resolving UCC filings subordination or tax issues arranging vendor trade credit agreements and facilitating legal documents .  We stay engaged until funding is completed and beyond.

This structured process not only identifies the right financing but also ensures that potential issues are addressed before they delay closing.  Think of us as your financial engineer guiding the project from blueprint to ribbon cutting.