Business borrowing

[Marmalade]

I've quoted on a 2 month job for the government which is going to cost me about 10 grand to do over a 2 month period.
I imagine the job will be over before the first invoice is paid and second one a month after that.

Most likely won't get a penny for 90 days.

So, I need to find 10 grand if this job comes off, my credit rating from the past has been quite bad but better the last 8 years but still not 10k worth.

Whats the likely chance my business bank would give a 10k loan repayable in 6 months/year if i supply a government purchase order as proof of the contract?

Anyone have any similar previous?
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Nobby the Bastard: How yo tell the difference between the actual japanese and her just screaming because she's had live fish stuck up her arse? [url=https://www.nicks-shop.co.uk/bcf-goodies-15-c.aspGet BCF stickers and things here[/url] Reflective helmet stickers - Legal requirement in france - Clicky

[Oldie]

Saw something on the telly about these new online lending/saving schemes where private individuals lend money on a risk/return basis. You post your details ie govt backed scheme, and folks offer funding for a fixed return. Google it and see how you get on. Sorry I dont have further details but tbey do exist.

[yambabe]

Difficult one.

If you were going to be invoicing regularly during the interim and just experiencing cashflow problems then I would say that invoice discounting, or more likely factoring, might be the way to go.

Essentially the finance company buys your sales ledger off you. They charge you a small %age of your turnover and allow you to borrow up to 95% of your invoice value subject to certain limitations. You also pay interest at a %age over bank base rate on the amount borrowed.

I can see 2 problems with this for you though, firstly they will usually only allow you a minimum 12-month contract so you'd be tied to them for all your work throughput for 12 months and secondly they don't particularly like businesses that are only relying on one customer although they may overlook that if it's a govt department.

Have you thought about asset-based lending - has the business got anything that might be worth that much that you could use as security for a loan? Maybe a car, tools or plant, office hardware/software, that sort of stuff?
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Sod falling in love, I wanna fall in chocolate.

[The Shaggy D.A.]

Depending on what the nature of the cost is, it may be possible to approach your supplier with a request for credit, based on the production of the government invoice, especially if they would get the interest instead of the bank.
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[Marmalade]

There are no major assets other than a couple of bikes worth not that much.

The major costs will be fuel and wages as it's a job covering over 750 miles per day, every day over a 24hr period so will need to pay others to do some of the work since there is the usual customers work to still do and i need to sleep some times
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Nobby the Bastard: How yo tell the difference between the actual japanese and her just screaming because she's had live fish stuck up her arse? [url=https://www.nicks-shop.co.uk/bcf-goodies-15-c.aspGet BCF stickers and things here[/url] Reflective helmet stickers - Legal requirement in france - Clicky