Contract with the government could represent a huge opportunity to grow your business and become more successful.
It costs money to fulfill a government contract. The company that secures this business must put up the money to complete the project. They have to hire labor, purchase materials and whatever costs are associated with a particular job. The bigger it is, the more they have to pay out.
This can be financially draining. Even if they can pull together enough money to finance this job, they might not be able to take on any other jobs. This means lost revenue and a squandered opportunity for growth. Even after they finish the job, their financial picture might not change for sometime because they will have to wait for the government to pay up.
Solution to having a government contract work for your business
Purchase order financing is a method of generating capital that would be ideal for those with government contracts.
Factoring involves purchasing outstanding invoices. This provides the seller the opportunity to get the working capital they need right away. They won’t have to wait until the invoice is paid. In fact, the entire process can be completed within a week. There won’t be too many business owners that wouldn’t prefer to be paid in 7 days after the completion of a job rather then 60.
After the invoices are sold, the factor will then collect on them. All monies collected will be returned to the original holders of the invoice. The factor doesn’t keep them but they do receive a fee. This is generally a percentage of the invoice. Get Started today!