Grow Your Business by Factoring Your Government Receivables
Government contracts can be large and lucrative opportunities for your business. For smaller businesses, taking on a government project could mean using up your working capital and waiting on lengthy payment terms. A large government contract has the potential to dry-up your cash flow and make it difficult to fund other projects that may arise.
It’s true that businesses with the ability to extend credit terms often win the best contracts. By factoring government receivables, you’ll always have a steady source of working capital to accept contracts with the government, cover operational costs and payroll, and take on additional projects while extending more generous payment terms. Don’t bypass opportunities. Invoice factoring for government contracts is the financing solution you’ve been waiting for!
Flexible Government Contract Factoring Programs
Companies that manufacture products or perform technical services for the federal government are eligible for factoring government receivables. Government factoring offers the benefit of liquidity without debt as well as total control of cash flow. The following are technical services that are required by the government and are eligible for government factoring:
- IT and computer services including systems maintenance and programming support
- Physical plant management
- Logistics and transportation
- Products for the military
- Communication systems
- Distributors and manufacturing
- Temporary staffing
- Medical services
Funding for Government Receivables
is Not Easy to Find — Let us Help!
Because government contracts often have invoices over $500,000 dollars, it is difficult for some factoring companies to provide the required funds. There are also federal laws governing the procedures for giving the financial rights to government contract invoices. The professionals at Factor Finders are well versed in the Assignment of Claims law as well as the Federal Acquisition Regulation guide so that their customers get the best possible funding for government receivables.
Stop Waiting to Get Paid
Get started today @ 855-322-8671
Government Contract Financing Requirements
Companies that are ready for a growth spurt can make a big impression thanks to accounts receivable factoring. If you’ve been wanting to bid on government contracts, but held back due to cash flow concerns – now is your chance!
Factoring government contracts guarantees cash flow without debt. By contracting with government agencies with good credit, business cash can be received quickly without a credit check or waiting period as with banks or other lending institutions. It doesn’t matter if you’ve recently started up or have a less than perfect credit history. It’s simple to qualify for invoice factoring!
- The local, state or federal agencies that owe the invoices must have good credit
- The invoice must have been accepted by the government agency for the delivered product or completed service
- The accounts receivable owned by the company must be unpledged
How Does Governments Receivable Financing Work?
It’s easier than you think! The application process is simple and usually only takes 3-5 business days. Once you’re approved, here’s what will happen:
- First, you provide a good or service to your client as usual
- Then, you submit the invoice to both your invoice factoring company AND your debtor. The invoice factoring company will verify the work and then advance you up to 95% of the invoice, usually within 24-hours!
- When your debtor pays the invoice, the factoring company will remit the remainder of the invoice, minus a small fee for utilizing factoring services
- Repeat as necessary — you get to choose which invoices you factor and when!