Minimizing the negative cash flow of the deal


Please assist with the given problem.

Congratulations! Your small company was just awarded a lucrative contract to provide hundreds of widgets to the US Government. If you perform well, you'll be on "easy street" with all the follow-on business. It will take you 6 months to produce and deliver the units. The US Government will not provide up front payments (payments prior to delivery) and, is notoriously late on paying "net 30" invoices.

Question 1: What can you do to minimize the negative cash flow of this deal?

Question 2: How are you going to keep your company afloat until you get paid?

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Finance Basics: Minimizing the negative cash flow of the deal
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