Flexible Financing for Government Contractors

Recent Success Stories

$20 Million, Healthcare Staffing Agency

• Challenge: A healthcare staffing agency serving multiple government agencies and international organizations globally experienced a sharp decline in revenue from its COVID-19 peak and faced a reduction in available credit from their banking partner.
• Solution: Porter Capital provided a $15 million factoring facility and a $5 million term loan, allowing the company to retain ownership and pursue growth goals, with new government contracts on the horizon.
• Outcome: The firm was positioned to rebuild revenue streams and bid on larger contracts.

$5 Million, Parts Manufacturer

• Challenge: An engineering firm specializing in tank parts secured a contract with the Department of Defense. While the initial contract was small, they needed cash flow to ramp up production for larger opportunities.
• Solution: Porter Capital provided a $5 million factoring facility to finance the company’s DOD receivables.
• Outcome: With the financial boost, the company expanded its production capabilities and successfully pursued larger contracts.

$750,000, Consulting Firm

• Challenge: A consulting firm transitioning into government contracting faced cash flow challenges due to slower-paying clients and narrow margins. They needed capital to bid on and fulfill government contracts.
• Solution: Porter Capital factored their outstanding invoices, generating the cash flow required to bid on, win, and staff government contracts.
• Outcome: The firm successfully secured a government contract and expanded their factoring line of credit to support further growth and financial stability.

$2 Million, Engineering Firm

• Challenge: A engineering firm working on infrastructure projects faced a 90-day payment delay on a $2 million contract. The delay strained their cash flow, making it difficult to cover expenses and pursue new opportunities.
• Solution: Porter Capital factored their outstanding invoice, providing immediate access to the $2 million in funds. This solution allowed the contractor to maintain operations and focus on growth without financial stress.
• Outcome: The contractor secured additional contracts, maintained steady cash flow, and positioned their business for continued expansion and success.

Why Choose Porter Capital?

Simplify your cash flow management with government contract factoring and access up to 90% of your invoice value in advance. Our efficient funding process is designed to help you secure the working capital you need quickly—often within days. You also have the freedom to factor only the invoices you choose, giving you complete control without long-term obligations.

At Porter Capital, we’re committed to supporting government contractors by addressing their unique financial needs. Whether you’re expanding operations or bidding on larger contracts, our flexible funding solutions provide the resources to help your business thrive. Share your invoices with us, and we’ll turn them into the cash flow you need to meet deadlines and grow your capabilities.

Beyond funding, we offer a suite of support services, including assistance with collections, credit protection, and back-office management. Get in touch with our team to learn how Porter Capital’s government contract factoring solutions can help your business reach new heights.

Navigating Common Challenges

While government contracts can be highly rewarding, they often come with unique challenges that can strain a contractor’s operations and finances. Understanding these hurdles is the first step toward overcoming them.

• Lengthy Payment Cycles: Payments from government agencies can take weeks or even months to process. This delay can lead to significant cash flow challenges, making it difficult for contractors to cover ongoing operational expenses and payroll while waiting for payment.
• High Project Costs: Fulfilling large-scale government contracts often requires substantial resources, including materials, equipment, and labor. These high upfront costs can place a significant financial burden on contractors, especially small or medium-sized businesses.
• Limited Upfront Capital: Many contractors struggle to secure the upfront funding necessary to begin a project. Without access to sufficient working capital, it can be challenging to purchase supplies, mobilize teams, or meet the stringent requirements outlined in government contracts.

The Benefits of Invoice Factoring for Government Contractors

Alternative financing solutions offer a lifeline for businesses navigating the financial challenges associated with government contracts. These funding options provide several key advantages that can help contractors maintain stability and achieve growth:

• Access to Funds Within 24 Hours of Invoice Submission: With alternative financing, businesses can receive cash quickly after submitting invoices.
• Eliminates Cash Flow Bottlenecks Caused by Government Payment Terms: Lengthy payment cycles from government agencies often create financial strain for contractors. Alternative financing bridges the gap, allowing businesses to maintain steady cash flow regardless of how long it takes for the government to pay.
• Positions Businesses to Take on Additional Contracts Confidently: With a reliable source of working capital, businesses can take on new contracts without worrying about whether they have the resources to fulfill them.