Government Contract Factoring Services

Securing a government contract is no small feat. The process often involves navigating complex applications, meeting strict eligibility and regulatory requirements, and enduring lengthy contract negotiations that can take months or even years. Congratulations to your business for successfully overcoming these challenges! Now that you’ve secured a contract, the next step is ensuring steady cash flow—and that’s where Porter Capital comes in.

Porter Capital is one of the leading factoring companies for government contracts. We specialize in helping government contractors nationwide turn outstanding invoices into immediate working capital. Our invoice factoring and accounts receivable financing solutions allow your business to cover operational expenses, meet payroll, and take on new projects without waiting for extended government payment cycles.

If your business provides products or services to the government and submits invoices for payment, we can help. With just a few pieces of information, we’ll provide a tailored financing proposal to get your invoices paid as quickly as Day 1.

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.

Industries We Serve: Government Contractors Who Benefit from Factoring

Our factoring for government contracts helps a wide range of government contractors across multiple industries. They turn to us because they know we can help them avoid red tape and receive the funding they need as soon as possible. Our client base of government contractors includes:

• IT and Technology Service Providers: Companies providing cybersecurity, software development and technical support for government entities depend on us to bridge cash flow gaps when billing on net 30+ terms. Our financing solutions help them invest in new technologies and maintain steady revenues.
• Security and Defense Contractors: With our help, these providers can manage their payroll obligations and cover their operational expenses as they fulfill government defense and security contracts.
• Medical and Healthcare Staffing: When it comes to healthcare professionals who serve government agencies, our services can ensure that these doctors, nurses and technicians receive their pay in a timely fashion.
• Transportation and Logistics Providers: In many cases government pay schedules don’t fit with the need for fuel, vehicle maintenance or driver payrolls, which is why so many companies within this sector turn to Porter Capital for factoring.

Why Choose Porter Capital?

Simplify your cash flow management with factoring for government receivables 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 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 government contract financing 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.
• No Concentration Limits: Many factoring companies limit the percentage of invoices they will factor if the contractor relies on a single government agency. We have no concentration limits, so contractors can get the funding they need without worrying about how many of their contracts come from a single agency or department. This allows them to maximize their working capital without encountering roadblocks.

Frequently Asked Questions

How much does government contract factoring cost?

The factoring rate for government invoices can vary depending on a number of factors. These include the value of the invoice, the creditworthiness of the government agency and the funding structure.  Talk to one of our knowledgeable representatives if you have additional questions about how much factoring with Porter Capital could cost you.

Does Porter Capital require personal guarantees?

Applying for a traditional business loan or line of credit often requires a contractor to offer up collateral. However, factoring through Porter Capital means the only consideration as to whether or not we will accept the invoices is the creditworthiness of the government agency. This means you don’t have to worry about putting up your business’ assets or any of your personal wealth as collateral to receive access to your funding. Instead, you can focus on putting the cash you receive to good use right away without creating concerns for the future.

How quickly can I receive funding?

When you work with Porter Capital as your factoring company, you can receive approval for your funding quickly — within 24 to 48 hours in many cases. This means you could have near-instant access to the money owed to you almost immediately after submitting your invoices. This can have huge implications for government contractors who may be frustrated with the slow speed at which many agencies process payments.

Do I have to factor all my invoices?

Not at all. Factoring with Porter Capital means you can choose to factor as many or as few invoices as you feel comfortable with, giving you more control over the process.

What happens if the government is late in paying?

Porter Capital manages the collections and credit protection to minimize risks for contractors. Rest assured that we will ensure you receive timely payments from your invoices so all you need to be focused on is doing your job and fueling your growth as a company.

Ready to take your business to the next level? Contact Porter Capital today to learn more about our financing solutions for government contractors!