What is
Government Factoring
Government invoice factoring provides businesses with funding to resolve cash flow challenges. With a standard factoring solution, a business enters into an agreement with a factoring company to receive funds for an unpaid invoice
Factoring Government Receivables
Working with the government can be a great opportunity for your business, but it comes with its own set of challenges. For example, even in times of economic uncertainty or government shutdowns, companies that have government contracts are always paid – however, this does not happen immediately. In fact, you could find yourself waiting 30 to 60 days or more for payment. This can quickly drain your working capital and put strain on your business.
Government contract factoring is an effective solution that allows you to get cash upfront for your government contract. With this, you can pay your vendors and employees without any delay.
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Bid on government Contracts
Businesses that offer credit terms to their customers often win the best contracts. If you factor your government receivables, you'll never have to worry about where your next source of working capital will come from. You'll be able to take on new contracts,factoring is an effective solution that allows you to get cash upfront for your government contract, you can pay your vendors and employees without any delay.
How Government Contractor Factoring Works
A big government contract can desiccate your cash flow and make it challenging to support other projects that may come up or finish the project you began. For example, if you're contracted by FEMA, the Department of Transportation, or even your regional school district--factoring can get you the money you need.
There are several compelling reasons to utilize factoring. One is that you receive payment quickly, often within one day.
We will help you by finding the best government factoring company that meets your business's needs through our industry expertise.
After you finish the quick application process, you can begin factoring. Once you submit the invoice, the factoring company will verify it and send you the money within 24 hours.
Advances are typically between 80 and 90 percent of the total invoice amount, with the rest held in reserve by the factoring company. The company then collects payment from the government agency on behalf of the contractor. Once paid, minus a small service fee, the factor releases the remaining funds to the contractor.
The money you receive from the factoring company in advance can be used to finish a project, cover day-to-day expenses like operations and payroll, for example. Factoring government contracts simply means getting your money faster and without any debt attached, unlike with a bank loan.
Get funds fast
for Government Receivables
Best option for you
Here at Factoring.io, we understand that funding government contracts can be more complicated than regular business-to-business deals because of all the extra regulations and compliance requirements. We have tons of experience with this type of financing.
Expertly understanding the Assignment of Claims law and Federal Acquisition Regulations, we are proud to offer exceptional factoring services for government receivables. Please contact us for a quote so that we can get you started with the best possible factor partner.
wide range of industries
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Can Your Business Qualify for Accounts Receivable Factoring?
Contracts for government projects at the federal, state, local and municipal level are eligible for receivables factoring. This offers the benefit of being able to liquidate without acquiring debt, as well as total control over cash flow. few industries that would be eligible are down below:
- Construction
- Communication systems
- Distributors and manufacturers
- Engineering
- IT and computer services
- Logistics and transportation
- Medical services
- Military products and supply
- Temporary staffing
How to Qualify for Factoring Government Receivables
By factoring government contracts, you guarantee cash flow without taking on debt. Whether you’re a recent startup or have a bad credit history, qualifying for invoice factoring is easy!
- The government agency must have accepted the invoice.
- The company's accounts receivable must not be pledged.
Any company that wants to grow quickly can take advantage of accounts receivable factoring. If your cash flow has been holding you back from bidding on government contracts, now is your chance! Learn how to bid on government contracts.
