Accounts Receivable Financing for Government Contracts

Taking on a large government contract can be a great opportunity for a small business to grow but can also pose cash flow challenges. Government contracts are usually very large which can mean payments come in at a sluggish rate, drying up a business’s funds and stalling other projects. Many small businesses need the capital immediately to pay for supplies, cover payroll and fund other projects. Accounts Receivable Cash offers flexible invoice factoring programs for government projects so your business can take on additional ventures and continue to grow without adding debt to your balance sheet. ARC will help you get immediate cash for your government receivables today.

Government Agency Factoring Benefits

Factoring government receivables provides many benefits to your business besides having a steady cash flow to operate on. The government factoring company handles the collections, allowing you more free time to bid on new projects and focus on growth. Another perk of AR financing is that you’ll be able to take advantage of early payment discounts from vendors. It also affords your business the ability to extend more attractive payment terms to your clients.

There are no minimum or maximum amounts required when factoring government receivables and there are no long-term contracts as part of the process. ARC is all about flexibility and the right process for your business to solve your cash flow problems.

How Does Factoring For Government Contracts Work?

Getting started with government factoring is simple. ARC will review our large network of government factors and match you with a factoring company who is best suited to your company. Unlike a bank loan, there is no credit check or waiting period because when you factor you are simply receiving money that is owed to you at a faster rate. The initial application process and paperwork generally takes less than a week, minimal documentation is required and you have the flexibility to choose which invoices to factor and when.

Here’s how easy it is to fund your government invoices within 24 hours:

1. Submit unpaid government invoices within 24 hours
2. The factor verifies the invoice
3. The factor issues up to a 95% advance of the invoice amount. The remaining amount is held in a reserve account until the invoice is paid.
4. The factor collects payment from your client (government agency).
5. The reserve amount is released back to you, minus a small factoring fee.