Win government contracts with a strong business credit score

Win government contracts with a strong business credit score

0 Comment

 

Would you like to have Uncle Sam as a customer?

Besides helping you secure loans and lines of credit, having a strong business credit score has many other advantages. One is landing government contracts.

According to the U.S. Small Business Administration, the market for selling goods and services to the federal government is worth hundreds of billions of dollars annually. The government makes these purchases from small business owners like you in many different ways:

  • For transactions less than $3,000, which are known as micropurchases, the agencies typically pays with a credit card. However, for more expensive deals, there is an approvals process which varies based on the method.
  • For amounts between $3,000 and $150,000 – these contracts are exclusively open to small businesses – there is paperwork and approvals that must be completed. Don’t worry though, the process isn’t overly complex.
  • For sealed bids, which is the government’s competitive process for selecting contractors, the information on your business credit report may be more crucial. You’ll need a DUNS number to apply, and although you may be able to offer the lowest bid, you’ll likely need to meet minimum credit score requirements, as well as prove your business is most suited for the job.
  • There are also contracts by negotiation, which is when the government issues requests for proposals, and consolidated purchasing vehicles.

⇒ Learn if you qualify for government contracts by clicking here.

Why do you want to land government contracts?

At this point, you may be wondering if bidding on higher-value contracts is worth the effort of signing up for business credit monitoring, so you can make your business a worthy candidate. Well, in addition to getting an immediate boost in business with the contract, here are other big benefits:

First, you get long-term business. Government contracts tend to be for long periods of time, which means your business will have steady revenue for a while. Consequently, you can better budget for the future, as you’ll have at least one large source of income during slow periods.

Second, you can attract more high-profile clients. If you want to partner with other businesses or land additional clients in need of expensive, contracted services, a government contract can be a viable marketing tool.

Keep in mind the solicitation process for getting a higher-priced government contract is a long and complex process. You don’t want to complete a ton of paperwork to lose a bid because your business credit score needs some work.

Be sure to check out resources for improving your business score before seeking government contracts.

Related: Can I Get a Business Startup Loan From the Government?

Financial Health—signup free

Pro Tip: Take charge of your financial health today with a FREE Nav account. We'll protect and monitor your personal and business credit, so when it comes time to find financing you're prepared on all fronts.

Rate This Article

This article currently has 1 rating with an average of 5 stars.

About the Author — Jared Proctor is Brand Director at Nav. He has over fifteen years of financial services experience and is passionate about small business issues. Jared is married to a small business owner and he's a father of twin toddlers, so discovering time hacks is a matter of survival.

Have at it! We'd love to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and protect yourself. Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers.

Reviews Disclosure: The responses below are not provided or commissioned by the credit card, financing and service companies that appear on this site. Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered.

Leave a Reply

Your email address will not be published. Required fields are marked *