Line of Credit Helps IT Consulting Firm Win Government Contracts, Pursue Acquisitions
A Q&A with Sekhar Prabhakar, CEO of CEdge Software Consultants
WHAT ARE THE BIGGEST CHALLENGES YOU FACE AS A BUSINESS?
We do a lot of work with the federal government, and some of those are big contracts. When the big contracts are awarded, we must be able to support new business until we begin getting paid – and there can be a lot of costs and expenses required up front. In our proposals, we must demonstrate that we are self-sustainable and can handle the work from a financial standpoint.
HOW DID ENTERPRISE HELP SOLVE THESE CHALLENGES?
One of the most important banking tools we utilize is a line of credit with Enterprise. We don’t always know what funding is required and don’t have to use it much, but it is a safety net and means we are completely ready to take on any big contracts that we win. Having the line of credit as a cushion helps us tremendously.
We also have extensive discussions with Enterprise about our ability to finance future acquisitions. We can only grow so fast organically, so we are considering growth through acquisitions. Knowing in advance how we can finance those acquisitions gives me great peace of mind.
WHAT IS THE IMPACT TO YOUR BUSINESS?
Proper financial backing has, without question, facilitated our growth. We can confidently bid on work knowing we can handle it from a financial standpoint, and it allows us to take on contracts of any size. I’m also more comfortable proceeding with our acquisition efforts knowing I don’t have to worry about financing. Having a strong financial partner lets me focus on the right areas of my business.
Business SnapshotCEdge Software Consultants
CEdge Software Consultants provides a wide variety of IT solutions to federal and state government organizations, as well as commercial enterprises throughout the U.S.
We need excellent accountants, lawyers and bankers to make this happen, and Enterprise is a key part of the ecosystem that supports us as we continue to scale our business.
St. Louis, Missouri