Financing Your Government Contracts With Factoring Financing

Financing Your Government Contracts with Factoring Financing
Are you selling products or​ services to​ the federal government? Every year, city, county, state and the federal government buy billions of​ dollars in​ goods and services from business of​ all types.
Although doing business with the government is​ great and financially rewarding, it​ can also be hard on your cash flow .​
Why? Government agencies take, on average, about 40 days to​ pay their invoices .​
In the meantime, you have to​ cover all your recurring expenses such as​ payroll, rent and supplier payments.
This is​ not a​ problem if​ you have 60 days worth of​ operating capital in​ your bank account .​
But what if​ you don’t? In that case, many business owners will try to​ get a​ business loan .​
Although that may help, business loans are tough to​ get and take a​ long time to​ set up .​
Also, business loans have set limits.
What business owners need, is​ a​ product that provides financing solely based on the business opportunity – on sales possibilities .​
This product exists and is​ called invoice factoring .​
There are many factoring companies that specialize in​ factoring government contractors and vendors.
Factoring accelerates your government payments, and enables you to​ get paid in​ days rather than months .​
It’s a​ form of​ financing where the factoring company advances you money against your government receivables .​
You get to​ use the funds immediately, while waiting to​ get paid .​
Once the government pays, the transaction is​ settled.
If you are reselling products to​ the government, you should also consider purchase order financing .​
In this case, the factoring company provides you with financing to​ pay your suppliers, enabling you to​ make the sale .​
Purchase order financing works well with invoice factoring and can also help you grow your company – exponentially.
So, if​ you own a​ business that sells to​ the government, be sure to​ look into factoring and purchase order financing.

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