Would a startup be more able to secure a loan with RFP system vs. S.O.?
True, the S.O. is designed to remove risk to ratepayer for below-standard performance by putting all the risk on service provider. If you’re not assured you’ll get paid, there is a different risk for the lender. However, a startup is very unlikely to win an RFP. RFP is supposed to weed out people who are not competent – unfortunately it weeds out people who can’t PROVE they’re competent. They want to know what’s your experience, credit-worthiness, and infrastructure. In order to convince you I would have the infrastructure for the program – I have to already have the infrastructure. Have to have hired 4 people and 2 trucks, then submit the RFP and wait six months for approval. Meanwhile I have to pay people while waiting for program approval. The biggest barrier is the time involved. It’s like a bank loan – they only loan money to people who don’t need it. The key difference between S.O. and RFP in terms of startup money is that the amounts are different. In order to get program approv
True, the S.O. is designed to remove risk to ratepayer for below-standard performance by putting all the risk on service provider. If you’re not assured you’ll get paid, there is a different risk for the lender. However, a startup is very unlikely to win an RFP. RFP is supposed to weed out people who are not competent – unfortunately it weeds out people who can’t PROVE they’re competent. They want to know what’s your experience, credit-worthiness, and infrastructure. In order to convince you I would have the infrastructure for the program – I have to already have the infrastructure. Have to have hired 4 people and 2 trucks, then submit the RFP and wait six months for approval. Meanwhile I have to pay people while waiting for program approval. The biggest barrier is the time involved. It’s like a bank loan – they only loan money to people who don’t need it. The key difference between S.O. and RFP in terms of startup money is that the amounts are different. In order to get program approv
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- Would a startup be more able to secure a loan with RFP system vs. S.O.?
