
During a government shutdown, hundreds of thousands of government employees go without pay and the same amount government-funded projects get halted due to lack of funding. The Small Business Administration (SBA) manages around 200 loans for working capital per day, according to the Washington Post. An additional 120 loans are filed per day for commercial properties. Overall, around $200 million worth of loan money each day is withheld from small and midsize businesses.
If your business cash flow has been impacted negatively during a full or partial closure, don’t worry. Factoring for government contracts during a shutdown is something that can be done. Invoice factoring also can be used as a substitute for your normal SBA loan funding during a shutdown.
How Do I Find Funding in a Government Shutdown?
Finding funding during a government shutdown is as simple as calling Factor Finders. We understand this is a difficult and stressful time for your business and will help your company navigate the invoice factoring process quickly and efficiently. All you have to have to begin factoring is unpaid invoices.

Factoring a Government Contract During a Shutdown
Factoring your government contract during a shutdown is something that is doable. Factoring companies love working with clients that work with the government because shutdown or not, the government has a great track record for paying its bills.
Whether you have one unpaid invoice or many, Factor Finders is able to match your business with a factoring company that will work with you during the shutdown.
How Does Factoring a Government Contract Work?
Factoring a government contract works in a process that is best described in steps.
Step 1: Your business contacts Factor Finders by phone or by filling out the form at the bottom of this page.
Step 2: Factor Finders ensures you have unpaid invoices that stem from the government contract your business is working on, then puts your business in contact with a factoring company.
Step 3: That factoring company purchases your business’ unpaid invoices from the government, then advances around 95% of that invoice amount to you, keeping the rest as reserve. When the government resumes operations, they will pay the factoring company directly. Once the factoring company is paid by the government, they will release the remainder of the reserve to your business, minus a small factoring fee.
Factoring Small Business Invoices During a Government Shutdown
If your small business is directly affected by the government shutdown, you can balance your uneven cash flow by taking advantage of factoring your unpaid invoices. Factoring small business invoices during a government shutdown is the same as factoring small business invoices while the government is in operation.
How Does Small Business Factoring Work?
Again, small business invoices factoring works in a way that is best described in steps.
Step 1: Your small business contacts Factor Finders by phone or by filling out the form at the bottom of this page.
Step 2: Factor Finders matches your business with a factoring company that bests fits your needs (ex: the factor is near your location, operates within your industry, or has specific features that are privy to your business.
Step 3: Your business submits its unpaid invoices to the factoring company. The factoring company then pays your business up to 95% of the invoice amount, minus a reserve. Once your customer pays the factoring company, they release the reserve to your business minus a small factoring fee.

SBA Loans During a Government Shutdown
While invoice factoring is something that is still a viable option for funding during a shutdown, Small Business Administration (SBA) loans are not. When the government is shut down, all “unnecessary” funding – including employee salaries and business loans – are put on hold. If you have questions concerning an SBA loan during a shutdown, you’ve come to the right place.

When the government stops, your work doesn’t have to.
Factor Finders is here to help your business find funding in the form of matching you with a perfect factoring company for your needs. You have enough to worry about during a government shutdown. Let us help you get the cash flow needed to continue operations, despite what is happening in the government.
Have questions concerning invoice factoring? Just give us a call.
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