 I have an email here that I received from someone that's out there watching on YouTube And I thought it was a really good email so much so that I decided to share it with you guys out there I want to just go through they asked some really legitimate questions And thus I thought it would be helpful if I just answered these questions on a live YouTube chat with you guys so that way other people can hear the answers and the responses I'm just gonna go through and read the questions if you don't mind The first thing is they were watching my supplier credit video and they said Eric Should I try and secure supplier credit prior to bidding contracts? That is a two-fold answer one is If your intentions are or if your plan is to become a prime contractor Then absolutely, you know once you determine your market and let's say your market is IT services Well, if you decided that your route that you're going to take and federal opportunities is a prime contract Then yeah, you definitely need to get yourself some supplier credit Because we talked about and some of the previous videos three reasons why you need to supply a credit in terms of leveraging your business in terms of actually being able to ensure that the order meets standards and also providing some legitimacy Trust and to the people who you intend on working with in the future as clients All right, so definitely if you are pursuing Contracts as a prime that one of the first things I would be doing is trying to secure myself supplier credit on the flip side of that If you decided that you want to be a subcontractor or if you want to be a consultant then you as a consultant You're going to be leveraging the credit of the firms that you represent So in that case the answer is no you do not need supply credit because again remember as a consultant we are like the outside sales team for some organization that we plan on representing down the road to the government and Hopefully if you've carefully selected the organization that you want to work with and they're large enough in terms of size and Capacity then they already should have supplier credit vendors and past performance All right, so that takes care of question number one Second question after you're paid did you just build up that money in your business account to be able to finance your contracts or so? So this goes back to the first part as a prime contractor if you know you were to go out And actually start building up money and trying to finance projects well, that would take a really long time because The government's not going to make value to make a hundred percent profit So even if you start off with five thousand dollars of actual credit And you say this is big five thousand your first job the next time around five thousand dollars may not be enough to finance the second Or third project and even if you make twenty or thirty or even a hundred thousand that may not be sufficient to finance the next project So no that's not a strategy for growing your business is Using the money that you save to finance the next job However using the money that you save to get additional credit or to expand your credit is a great strategy Number three once the government has received and accepted the product. Do you have to invoice the government to get paid? Or is this automatic? Yes, if the government has received your product, they've received it and they've accepted it You still have to provide an invoice to the government in order for them to issue a Order to actually pay you so yes If the government receives the product tomorrow and they approve it You still need to send them some sort of invoice put something into the computer system to get the top clock ticking Towards your payment being processed. Okay, and then that's something that you definitely have to follow up with and the last question It says let's assume that your credit is 30 days with your supplier So that's from the time that you order or the deliveries may but the government does not pay you until they receive the goods This may put you past a 30-day window to remain in good standing with the supplier This is a very good question. And yes, they're correct. If you if your credit says 30 days, right? That's true. But normally most of the time what happens is this your supplier if they issue credit for say 30 days Typically the 30 days is from when you receive the item Well, I'm assuming that you're having the item dropship to the government's facilities So that 30-day clock starts from when the government receives that item The government then at that point has a certain amount of time in which they must and Inspect the items and I'm assuming that because you are a great contractor That you're going to actually be on site or be somewhere in the vicinity so that you can be doing the inspections alongside with the government It also helps because you can be urging them along to get this process done in an expedited manner So let's assume that you're there the materials come in place I find it very rare that the government is going to take more than a few days to actually do the inspection So you're going to be right along the time frame of 30 days because the actual company Can't invoice you well they can but they typically don't invoice you until you've received the items So now they ship they lend it on the government installation you sign for them And then your clock starts taking from there And as I mean by you being on site with the item once it's delivered Then you can have it checked in the next few days And then they can put you can go ahead and submit your invoice to receive your payment so it should work out in terms of the timing and I would suspect that as long as you know that the payment has been processed It's in a system that's typically sufficient for most suppliers and vendors to know that the money is coming down the pipeline Trust me. It's much more Helpful that you know again that you're paying them and they see that pattern Then most of suppliers will work with you and know that hey listen It's gonna be a few days after the 30-day window where you're gonna get paid because you're working with fellow government And they have processes to follow The important thing is when you get the money to actually pay them in full and not string them along and pay them apart of The money or anything short of 100% of the payment. That's more important than being two or three days late So I hope that I answered some questions for all of you guys out there by look at this video as always Thanks for watching. We'll see you next time You