You Are the Winning Bidder!
You just received notification from a government entity that you’re the winning bidder. Congratulations! First, you celebrate. Then reality sets in and you begin to wonder how you will finance the contract. Whether you are providing a service, parts, or supplies you begin to question whether suppliers will work with you and give me the terms you need until you can get paid. How will you meet payroll? These and other questions, usually all related to cash flow issues surrounding the completion of the contract can become an obstacle to the performance on the contract. Can alternative financing solutions like factoring and purchase order funding apply to government contracts? In almost all cases the answer is YES!
Since government entities at all levels have always been attractive customers of small businesses, today’s difficult economic climate has tremendously increased the focus on government contracts. Government contracts can be large and cover a lengthy period of time therefore requiring substantial working capital for the life of the project. Government contract factoring and in some cases purchase order funding can be the financing solutions that are the difference between businesses turning down or not pursuing contracts and fulfilling profitable opportunities, especially when traditional financing is not available. For more information on how these work please see factoring and purchase order funding.
Assignment of Claims Act
The US Government has a law that makes it easy to finance US Government contracts. This law is known as the “Assignment of Claims Act” and it provides a means for funders like Infusion Funding LLC to help businesses finance their US Government contracts. Most state governments, local governments and government agencies…but not all…have similar means through which funders like Infusion Funding LLC can provide for financing for businesses providing products or services to them.
How We Can Help
Infusion Funding LLC is experienced with government contract factoring at all levels of government contracting. We have funded companies sourcing products through companies providing services over a lengthy period of time. Please give us a call to discuss how factoring your government contracts can help your company’s growth.
For more information, contact Frank Erwin