If you’re in government contracting and looking for funding, here’s something you might not want to hear: only 3% of contractors come to the table with the financial documents lenders actually need.
That stat comes from Krisztina Fellner, Client Advisor at Parabilis and seasoned small business finance expert. Krisztina sat down with Parabilis’ Teresa Moon to walk through what small businesses should have in place before seeking capital, and why a well-built proforma might be the most important tool of all.
What’s a Proforma—And Why Should You Care?
A proforma is a forward-looking financial projection, but Krisztina calls it something more useful: a business owner dashboard. It helps you:
- Map your expected revenue from awarded contracts and pipeline
- Track your direct costs and operating expenses
- Model profitability month by month
- Plan for debt service
- Forecast growth based on real assumptions
Parabilis offers a free, customizable version built specifically for government contractors, with space to track commercial contracts, awarded task orders, IDIQs, and more.
Why It Matters to Lenders
Government contracts are your collateral—but only if you can document them clearly. Lenders don’t count IDIQ ceilings as revenue. They need to see task orders, contract numbers, and real pipeline estimates.
And It’s Not Just for Loans
Even if you’re not seeking funding today, your proforma helps you:
- Adjust your pricing strategy
- Monitor gross margin trends
- Spot spending issues before they spiral
- Plan staffing around projected revenue
It’s not fun to build the first time—but it will save you time, money, and stress in the long run.
Your Next Step
Most small businesses aren’t using a tool like this. Whether you’re prepping for growth or just trying to survive delays in payments, having financial visibility puts you ahead of the pack.
Ultimately, this isn’t just a financial exercise. It’s a competitive advantage. Most contractors don’t show up with this level of documentation. If you do, you instantly stand out.
Be sure to watch Krisztina’s entire breakdown here.