Taking on a large government contract can be a great opportunity for a small business to grow but can also pose cash flow challenges. Government contracts are usually very large which can mean payments come in at a sluggish rate, drying up a business’s funds and stalling other projects. Many small businesses need the capital immediately to pay for supplies, cover payroll and fund other projects. Accounts Receivable Cash offers flexible invoice factoring programs for government projects so your business can take on additional ventures and continue to grow without adding debt to your balance sheet. ARC will help you get immediate cash for your government receivables today.
Government Agency Factoring Benefits
Factoring government receivables provides many benefits to your business besides having a steady cash flow to operate on. The government factoring company handles the collections, allowing you more free time to bid on new projects and focus on growth. Another perk of AR financing is that you’ll be able to take advantage of early payment discounts from vendors. It also affords your business the ability to extend more attractive payment terms to your clients.
There are no minimum or maximum amounts required when factoring government receivables and there are no long-term contracts as part of the process. ARC is all about flexibility and the right process for your business to solve your cash flow problems.
How Does Factoring For Government Contracts Work?
Getting started with government factoring is simple. ARC will review our large network of government factors and match you with a factoring company who is best suited to your company. Unlike a bank loan, there is no credit check or waiting period because when you factor you are simply receiving money that is owed to you at a faster rate. The initial application process and paperwork generally takes less than a week, minimal documentation is required and you have the flexibility to choose which invoices to factor and when.
Here’s how easy it is to fund your government invoices within 24 hours:
- Submit unpaid government invoices within 24 hours
- The factor verifies the invoice
- The factor issues up to a 95% advance of the invoice amount. The remaining amount is held in a reserve account until the invoice is paid.
- The factor collects payment from your client (government agency).
- The reserve amount is released back to you, minus a small factoring fee.
Who is Eligible for Government Invoice Factoring?
Businesses that provide products or services for the government are eligible for government invoice factoring. Factoring provides steady capital to businesses waiting on a large payment from the government. This gives business owners full control of their cash flow and the ability to take on additional projects. Types of government projects we help fund include:
- Products for the military
- Medical services
- Temporary staffing
- Logistics and transportation
- Communications systems
Let ARC Help Fund Your Government Receivables Today
The experts at Accounts Receivable Cash will help you find the right factor today by calling 866-937-8146. Let us connect you with the right government factor to solve your cash flow problems and help you grow your business.