GOVERNMENT INVOICE FACTORING
Turn your outstanding government contract invoices into cash right away.
Set your terms, define your criteria, and let pre-qualified factors compete for your business.
Complete the form below and have factors competing for your business
Our service is fast, easy, and FREE!
Pre-Screened Government Factoring Companies
At National Factoring Association, we put the power of choice into your hands by allowing you to search for and evaluate pre-qualified factors that specialize in education and government contract invoice factoring.
Factoring can differ greatly from industry to industry. Since you’ll be selling your government invoices to someone else to collect on them, you want to make sure that company knows how to deal with government agencies. National Factoring Association allows you to search for factors by their industry specialization so that you can be certain that you’re evaluating factoring companies that truly understand the intricacies of factoring government contract invoices.
Once you’ve entered your search criteria, you’ll receive up to 10 factors that meet your needs to compete for your business. We screen and vet all of our factors to ensure you are working with the most ethical and fair government invoice factoring companies out there. This reduces a lot of the stress and strain that comes with researching factors. Our service is, and always will be, free to you.
Why Government Contractors Leverage Factoring
Securing a government contract is usually a great boom to your business. Government contracts typically mean long, steady work for the length of the contract. But that steady work comes with a drawback. Namely, getting paid quickly. Government jobs may guarantee payment but they don’t provide any guarantees that the payment will arrive when you need it.
This can create a cash crunch for many businesses that supply goods or service to the government or education sectors. While the supplies and materials may be required upfront, payment isn’t typically due until 60-90 days after the project has been completed. For many companies that’s just too long to go without getting paid. It makes taking on new jobs difficult and can even make it hard to meet your day-to-day business expenses. Government invoice factoring can change that by paying you for the work you completed as soon as you submit the invoice.
Factoring Government Invoices
Government invoice factoring is as simple as selling your government accounts receivables to a third-party factoring company. The factoring company will pay you a percentage of the face value of those completed invoices – as much as 90% in some cases – and you can carry on with business as usual.
Once the invoice has been sold, you’re done! The factoring service will then collect on the invoice from your client and pay you the remainder of the invoice amount, minus their fee. It’s a very straightforward, low-risk way to raise capital and keep your business going.
How Government Invoice Factoring Works
Let’s say you complete a job for $100,000 but won’t get paid on it until 60-90 days from now. This can severely hinder your ability to take on new projects or pay your business expenses in the meantime. You can sell that invoice to a factoring company and receive payment much quicker, perhaps in 1-5 days instead of 60-90 days.
A factor will usually buy a portion of the invoice, not the whole thing. So while you may not get paid the $100,000 right away, you could get paid $90,000. Once the factor has collected the full $100,000 from your government client, they will pay you the remaining $10,000 minus their fees.
To find your factor, fill out the form on this page. Soon you will have factors that specialize in government invoice factoring competing for your business.