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That Specialize In Construction Factoring Financing.

What is Government Contract Financing?

Government Contract Financing is business financing products provided by lenders that specialize in funding capital to businesses that have won contracts from either a U.S Federal, State, or Local Government offices.

Traditional banks tend to shy away from lending that is based solely on U.S. government accounts receivable,  mainly due to all the rules and regulations contained in most government contracts, and the belief within the industry that collecting from the Government is hard and can take a long time. Many options are available for Government Contractors that are looking for Financing.

 


 

The Government's spending will account for roughly one-third of the total U.S. annual GDP. 

WHAT ARE THE BENEFITS OF THE PRODUCT INFO

How Does Government Contract Invoice Factoring Work?

Government Contract Invoice Financing allows businesses the ability to sell their  Invoice/Receivables to a lender,  to factor up to 90% of the invoices face value.  The U.S  Assignment of Claims Act of 1940 allows companies to finance their Government Invoices.

A company that has completed a Government Contract may be willing to sell the invoice from the job to get the capital needed to maintain their business and to take on more than one project at a time. The U.S. Government is an excellent client but one that typically takes 30 to 90 businesses to pay.

If a company wants capital after completing a Government Contract and does not want to wait 30-60 business days or perhaps more to receive payment,  then selling the invoice to a lender to Factor could provide a Government Contractor cash it wants right away.

The lender factoring the Government Contract Invoice will handle collecting the payment from the Government agency, who is the payer. Once the invoice is finally paid, the lender will remit the remaining invoice balance, minus the Factoring fees back to the seller.

Government Contract Invoice Factoring is an Invoice Financing product that allows Government Contractors to free up capital needed to bid for multiple contracts at once, competing for lucrative contracts, and cover expenses, without taking on debt instead of selling their completed lucrative Government Invoices.

Don’t Fit The Criteria? Don’t Worry.

How Does Government Contract Invoice Factoring Work?

Government Contract Invoice Financing allows businesses the ability to sell their  Invoice/Receivables to a lender,  to factor up to 90% of the invoices face value.  The U.S  Assignment of Claims Act of 1940 allows companies to finance their Government Invoices.

A company that has completed a Government Contract may be willing to sell the invoice from the job to get the capital needed to maintain their business and to take on more than one project at a time. The U.S. Government is an excellent client but one that typically takes 30 to 90 businesses to pay.

If a company wants capital after completing a Government Contract and does not want to wait 30-60 business days or perhaps more to receive payment,  then selling the invoice to a lender to Factor could provide a Government Contractor cash it wants right away.

The lender factoring the Government Contract Invoice will handle collecting the payment from the Government agency, who is the payer. Once the invoice is finally paid, the lender will remit the remaining invoice balance, minus the Factoring fees back to the seller.

Government Contract Invoice Factoring is an Invoice Financing product that allows Government Contractors to free up capital needed to bid for multiple contracts at once, competing for lucrative contracts, and cover expenses, without taking on debt instead of selling their completed lucrative Government Invoices.

What Are The Benefits Of Government Contract Invoice Financing?

Government Contract Invoice Factoring can work with start-up up’s and companies who have limited or no credit history.

Government Contractors are free to select the invoices they want to Factor and amount of capital they want to be advanced per invoice. There are typically no monthly minimums with this product.

Government Contract Financing allows Contractors to take advantage of third-party collection and credit services.

Government Contractors can work directly with our Lenders team of decision-makers. The latter is familiar with the Assignment of Claims and Federal Acquisition Regulations guidelines, which is an element that can cause much confusion and complication when you want to finance Government contracts.

By helping Contractors with the handling of the collections and regulations, Government Contract Invoice/Receivables, Factoring can make it easier for Government Contracts to focus on the other aspects of the customer relationship where they bring the highest value delivering exceptional products and excellent customer support.

Government Contract Invoice Factoring can provide Contracts with a better means to access Working Capital needed to expand

This product could also be used to finance new contract opportunities & cover the long expenses needed to fulfill the existing contracts

Government Contract Invoice Factoring can be used to fund payroll, including mid-month payroll, serve supplier expenditures, and maybe even retire current creditor obligations.

What Are The Additional Business Financing Options For Government Contractors?

Government Contractor Work in Progress (WIP) Factoring

Government Contract Work in Progress Factoring can be an excellent product for when a Contractor has work in progress and can not bill the client as of yet to cover expenses. 

Government Contractor SBA Loans

Government contractors have access to circling credit programs but can also borrow capital over the long term by using government contractor SBA programs. The SBA 7(a) program is the most common SBA loan program for government contractors.

Government Contractor Bridge Loans

Bridge Loans are a viable option for Government Contractors to receive capital for contract writers forbids, equipment, inventory, or general working capital. 

Government Contractor Business Line of Credit

One of the most flexible financing options for Government contractors can be a Business Line of Credit.

Government Contractor Term Loans

Government financing programs that can be structured whereby the companies receivables and assets serve as collateral for a Business Term Loan.

Equipment Financing for Government Contractors

Equipment can be an integral part of performing on most Government contracts.

Government Contract Financing troy closing statement

Every year the federal government allocates roughly $500 billion in Government contracts. The federal government typically awards about 23% of all Government contracts to small and mid-sized business owners.

This means that over $100 billion PER YEAR of Government contracts that are on the table.  Now no one doubts the U.S Government’s ability to pay, Contractors receiving their owed payments are generally assured.

On the other hand, the timeliness of payment is the BIG ISSUE. Oftentimes government agencies pay on a predefined payment schedule anywhere from net 30 up to net 90 business days or more.

These invoice terms are pretty much set in stone and can be challenging to negotiate. When Contractors typically attempt to turn to traditional lending, they state that most banks will not finance a single customer that represents more than 20 percent of a company’s total accounts receivable.

The Government is such a great client to have on the books that most Contractors end up doing more than 20% of their business with the Government.

The federal government contracting climate is different from standard invoice factoring. A lot of lenders that Factor may shy away from Government Contract invoices due to the complexities of providing Government work and the difficulty with collecting from the Government agencies at times. 

Our lenders are extremely knowledgeable in current government regulations, compliance requirements, and the details of Government contracting. Troy Business Group has a team of seasoned Business Financing Consultants that specialize in providing clients with access to the best Government Contract Financing options. Please apply online, email us for an appointment, or call us today.  

Our team is committed to helping your business grow with Government Contract Financing and will guide you through the loan process each step of the way.

– WHAT COMPANIES COULD USE THE PRODUCT
– HOW DOES THE PRODUCT WORK
         – WHAT ARE THE BENEFITS OF THE PRODUCT
         – WHAT ARE THE ELIGIBILITY REQUIREMENTS FOR A PRODUCT

We Are A Full-Service Business Financing Firm With Consultants
That Specialize In Financing.

“Every year the federal government allocates roughly $500 billion in Government contracts. The federal government typically awards about 23% of all Government contracts to small and mid-sized business owners.”

“This means that over $100 billion PER YEAR of Government contracts that are on the table.  Now no one doubts the U.S Government’s ability to pay, Contractors receiving their owed payments are generally assured.”

“On the other hand, the timeliness of payment is the BIG ISSUE. Oftentimes government agencies pay on a predefined payment schedule anywhere from net 30 up to net 90 business days or more.”

“These invoice terms are pretty much set in stone and can be challenging to negotiate. When Contractors typically attempt to turn to traditional lending, they state that most banks will not finance a single customer that represents more than 20 percent of a company’s total accounts receivable.”

“The Government is such a great client to have on the books that most Contractors end up doing more than 20% of their business with the Government.”

“The federal government contracting climate is different from standard invoice factoring. A lot of lenders that Factor may shy away from Government Contract invoices due to the complexities of providing Government work and the difficulty with collecting from the Government agencies at times.”

“Our lenders are extremely knowledgeable in current government regulations, compliance requirements, and the details of Government contracting. Troy Business Group has a team of seasoned Business Financing Consultants that specialize in providing clients with access to the best Government Contract Financing options. Please apply online, email us for an appointment, or call us today.”  

“Our team is committed to helping your business grow with Government Contract Financing and will guide you through the loan process each step of the way.”

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