Government Factoring Companies
Factoring Your Government Invoices
Government contracts are fantastic opportunities but can put a strain on a business’s cash flow. A government factoring company understands the differences in payment terms from a federal level to a municipality level along with the requirements for the Assignment of Claims Act for various agencies and departments. Even if you’re just getting started with bidding, a government factoring company maybe be able to assist with a pre-approval letter of credit to submit with your bid proposal, or RFP.
A factoring company that specializes in government contracting will typically offer a slightly higher advance than a standard factor. You can expect an advance between 80 and 90% of the invoice value. Often a factoring company will take into consideration the nature of work and whether it’s a federal, state, city, or municipal level contract. Federal contracts typically have less variables when it comes to a factoring company determining rates and terms and are typically paid in net 30 to net 60 day terms, averaging around the net 40 to net 60 day range. A state, city, or municipal contract may have more variables and longer terms but will still return favorable rates and terms from a government contracting factor.
The government invoice factoring process is similar to a standard factoring arrangement with some minor differences. This includes understanding the difference between a notification of assignment . Additionally a government factoring company will typically need access to your CAGE information that is . These minor differences are why a government specific factor are the best option to prevent any slow down when it comes to getting you started.
Federal Departments and Branches We’ve Worked With:
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Benefits of Invoice Factoring For Government Contractors
Factoring is a readily available solution to your cash flow crunch. Whether you’re waiting 30, 60, or even 90 days to get paid there is a government factoring company for you. Check out some of these other benefits from the factoring companies we work with: