Government Receivables Financing
Landing a government contract is a great opportunity for your business, but it can also take a toll on your working capital. Maintaining a steady cash flow is important for businesses in every industry. Government agencies can take up to 60 days to pay, making it hard for your business to take on new projects while you wait for the payment. Factoring your government receivables will increase your cash flow so you have the funds necessary to start your next venture.
Benefits of Factoring Government Contracts
Invoice factoring comes with many benefits. We know working with government agencies can be sporadic, that’s why we don’t require long term contracts or minimum amounts to qualify for factoring. Some more perks include:
- High advance rates
- Low fees
- No minimums
- Same day funding
- No setup fees
- No long term contracts
- No debt
- Dedicated account managers
Need Cash Flow?
Request your free quote below or call 855-322-8671
Types of Government Contracts to Factor
There are tons of government agencies that business owners can work with. Some of them include:
- US Coast Guard
- Department of Health and Human Services
- National Guard
- Department of Defense
- Department of Transportation
How Does Factoring Government Contracts Work?
Do the work
Submit the invoice
Industries Eligible for Government Receivables Funding
Whether you have secured a contract with the federal, state or local government, these projects are eligible for factoring. Financing for government receivables offers the benefits of a strong cash flow without creating debt. Small business owners often secure contracts with government agencies in times of natural disaster. Industries such as staffing, trucking and construction are in high demand when natural disasters such as hurricanes or severe flooding occurs. Businesses in these industries use these contracts to provide disaster relief and help people in need. Some industries that are eligible for receivables financing during these times include:
- Logistics and transportation
- IT and computer services
- Military Products
- Distributors and manufacturers
- Temporary staffing
- Medical services
Qualifying for Accounts Receivable Factoring
Qualifying for invoice factoring is easy. It doesn’t matter if you’ve been in business for years or are just starting out. You also don’t need great credit. The only requirements for factoring are:
- The invoice has to have been accepted by the government agency for the provided service or product.
- The accounts receivable owned by the company must be unpledged.
If you’ve been waiting to bid on government contracts because of a lack of cash flow, now is your chance! Contact Factor Finders today and we’ll get your business on the path to success.