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Government Factoring

Grow Your Business by Factoring Your Government Receivables

Government Contract Financing

Landing a government contract is an excellent opportunity for any business. However, taking on a government project could quickly drain your working capital while you wait 30, 45, 60+ days for the government agency to pay. Invoice factoring for government contracts closes the cash flow gap contractors face between project completion and payment. With this type of financing, business owners get paid upfront to ensure they have the funds necessary to cover all operational costs and payroll.

Bid on Contracts with Confidence

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 new government contracts, cover payroll and operational costs, and take on additional projects while extending more generous payment terms. Don’t bypass opportunities. Invoice financing for government contractors and suppliers is the working capital solution you’ve been waiting for.

Government Contract Factoring: How it Works

A large government contract has the potential to dry-up your cash flow and make it difficult to float other projects that may arise. Whether you’re working on a project for FEMA, the Department of Transportation, or your local school district, factoring can get you the funds you need.

Accounts receivable factoring is straightforward. It’s a debt-free alternative funding method that involves selling your government invoices to a factoring company. Once the invoice is submitted, the factor verifies the invoice and advances contractors the cash within one day. Advances can be between 80%-90% and the remainder is held in a reserve account.  Then, the factoring company collects payment from the government agency. Once the invoice is paid, the factor releases the remaining portion in reserve back to the contractor, minus a small fee for the receivables factoring service.

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Funding for Government Receivables — Let us Help!

Factor Finders is experienced in government contract financing. We understand that government factoring can be a bit more complicated than a B2B factoring transaction, thanks to regulations and compliance requirements. Federal laws are in place to govern the procedures for assigning the financial rights to government contract invoices. We’re well-versed in the Assignment of Claims law, as well as the Federal Acquisition Regulations, to ensure we provide the best factoring services to customers.

 

Stop Waiting to Get Paid

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Government Contract Financing Requirements

Is Your Business Eligible for Receivables Financing?

Contracts for federal, state, local and municipal projects are eligible for factoring government receivables.  Government factoring offers the benefit of liquidity without debt, as well as total control of cash flow. Here’s an example of some industries that are eligible for receivables financing:

  • IT and computer services
  • Logistics and transportation
  • Military products and supply
  • Communication systems
  • Distributors and manufacturers
  • Engineering
  • Temporary staffing
  • Medical services
  • Construction

Factoring government contracts guarantees cash flow without debt. 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 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

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!

 

government receivables factoring

 

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