Government Contractors Get Working Capital from Factoring Services.If your construction company is awarded a contract by the government to construct a highway or a bridge, that will be like finding a gold mine. Most contracts awarded by the government are usually projected to cost millions of dollars. However, doing business with the government also has a disadvantage: it is seldom that you get your payments on time. This is true whether you are dealing with a local government or the national government. That is not deliberately done, but since most governments have huge bureaucracies that process their financial obligations, the payments for completed contracts are often not given promptly.
As a result, a construction company which has most of its money invested in the project suffers a long delay of payment. Its business operations will be significantly jeopardized. With most of its liquid assets tied up, the construction company cannot offer their construction services to other customers, whether private or public.
There Is Help Available
Fortunately, in today’s business world, there are certain financial remedies that can help government contractors. If they run into the payment difficulties they can always run to factoring companies. Such companies act like a financial rescuer of public works contractors who are in dire financial straits.
They are willing to give cash to contractors who already have invoices issued to the government but have not received their payments yet. This is a good financial remedy while waiting for the payment for the construction works that you have completed.
The Factoring Company Does It All
For a certain percentage in interest the factoring company will “lend” you the amount that you need. The total amount that you will be able to “borrow” from the company will depend on the amount of the invoice that you have issued to the government.
Depending on your arrangement with the factoring company, they can also facilitate the collection of your payment. You can strike an arrangement with the factoring company where you will authorize them to follow up your payments.
Use Factoring Companies To Your Advantage
Rather than waiting for your payment to arrive, you can “borrow” from a factoring company against your collectibles with the government. In that way, you will be able to have the cash by which you can pursue other construction projects for other customers. The factoring company will advance you the money you will need, minus the interest that you agreed to pay them for their services.
Using the services offered by a factoring company like Neebo Capital will help you keep your construction business going. We charge the lowest interest rates for government contractors, beginning at 0.59% only. There are no monthly minimums and our terms are very flexible.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
Quick Link to Financial Resources:
|Purchase Order Financing||Accounts Receivable Financing||Asset Based Lending Options|
General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company