Lesson 12: Financials and Insurance

Financial Viability 

Most clients want to make sure your company has the financial capacity to deliver the services and will be in operation for the length of the contract term. When they ask for your financial information, they aren’t looking at how much money you make. Rather, they are looking to see that you have a viable business and financial structure and will be able to deliver the products or services for the duration of the contract. 

To support your financial viability, you could be asked to include the following information: 

  • Copies of your financial records for the past two to three years (if you are a new organisation you can provide the financial information you have available) 
  • Contact details of your bank or financial institution 
  • A letter from your accountant, attesting to the financial profitability of your organisation 
  • A risk report from Dunn & Bradstreet or CreditorWatch 

Tender Tip

As a small business, I know what you are likely thinking.   But I don’t want to provide my financial statements. 

However, I really recommend you do. They have asked for this information because it’s part of their evaluation process. They aren’t there to judge how much money you make; they just want to make sure you don’t have high levels of debt!  Be proud of your business and your earnings, no matter what they are. 

Insurances 

Insurances provide the client a guarantee you have the appropriate cover to deliver your products and services. Some clients will request a specific limit of coverage. If you don’t currently have that amount of coverage, it’s important to make a statement to that effect. Also remember to include certificates of insurance to support your claim. 

These are the standard insurances requested by most RFTs. If there are other applicable insurances, include them as well. You can also include a copy of your certificates of currency in your attachments in order to show the validity of your information.