Every year, the government awards billions of dollars worth of contracts to private companies throughout the United States. While that brings income-generating opportunities for a diverse range of companies, it can also present some financial challenges.
Some businesses can struggle to cover the costs associated with delivering the contract while still funding ongoing projects and operations. Others find the personnel required to complete the contract expensive, particularly when they have to wait up to 120 days to receive payment for their invoices.
The result can be working capital problems that effectively paralyze the company and stall its growth. That’s where government contract factoring and solutions can help.
What Is Government Contract Funding?
Government contract funding gives private companies, particularly small and medium-sized businesses, a way to access the money they need to sustain their operations while delivering government contracts. That helps to prevent a situation where you win a bid but are not able to fulfill it for financial reasons.
There are negative consequences associated with defaulting on a government contract. That’s why it’s so important that you explore your government contract factoring and funding opportunities early on.
What Are Your Options?
At Porter Capital, we offer several government contract funding solutions to help you overcome the specific financial challenges that your business might face. That includes:
1. Government Invoice Factoring
Factoring government invoices helps businesses to eliminate the cash flow problems that result from the slow paying of government invoices. Rather than waiting 30, 60, 90 or even 120 days to get paid by the government, you’ll receive an advance payment that’s worth up to 90% of the value of an invoice within just 24 hours of issuing. You’ll receive the balance of the invoice when the government completes the payment, minus a small fee.
Qualifying for government invoice factoring with Porter Capital is easy. The government might be a slow payer, but it’s very reliable. That removes any concerns we may have about the creditworthiness of your customers. A funding line for factoring government receivables can be set up quickly, isvery flexible, and the advance payment you receive will grow as your revenues from government projects increase.
2. Asset-Based Lending
Larger businesses that cannot qualify for a conventional line of credit may be able to benefit from a government contract loan funding solution such as asset-based lending. This funding option allows you to raise money against company assets, including inventory, equipment, vehicles, and accounts receivable. The type of funding that’s available can come in the form of lines of credit or term loans and will depend on the value of the underlying asset.
At Porter Capital, this type of solution is often used by small to medium-sized government contract companies that need to cover short-term cash flow demands. For example, a business may need a quick line of credit to cover its payroll expenses while it waits for a government invoice to complete payment. One of the benefits of this type of funding is that the interest rates tend to be lower than unsecured loans as the lender can recoup its losses if the borrower defaults.
The Government Contract Factoring and Funding Specialists
At Porter Capital, we have more than 30 years of experience funding businesses just like yours. As specialists in government contract funding, we will work closely with your business to tailor a cost-effective funding solution that meets your specific needs. Our rates are among the very best in the industry and you’ll receive outstanding customer support throughout the process.
- Credit lines of $5,000 to $25,000,000
- Funding arranged in just 24 hours
- Rates as low as 0.75% per month
- Easy application and quick approval
- No hidden fees or terms
- Personalized, helpful, and professional support
- Funding across the entire United States
- The security of working with a provider with 30 years of experience
Contact Porter Capital for Government Contract Factoring
Cash flow is essential to any business. Your government contract should be a solid revenue source and act as a foundation upon which you can grow and expand your business. By working with Porter Capital, our government factoring services will ensure you receive your income quickly to enhance your daily operations and allow for more business opportunities.
At Porter Capital, we have extensive experience helping small and medium-sized companies advance their contracts with government agencies at the federal, state and local levels. Our team understands the different payable procedures at each level and how to collect payment effectively to create a customized financial solution. Utilizing our services will not add debt to your company and can assist in financial situations ranging from cash flow improvement to asset-based lending. Take advantage of our services today for a stable and reliable source of income.
To learn more about our government contract factoring services or start utilizing our services to help your business grow and succeed, get in touch to discuss your government contract funding requirements. We look forward to helping your business today!