Funding Options We Offer to Government Contractors
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.