When your company takes frequent contracts from federal, state or local governments, it usually takes at least 30 to 60 days to get paid for the work. Government contracts are often for a substantial amount of work as well. This means your company must do without a large amount of money for a long period of time. Many factoring companies do not want to fund businesses that deal with government contracts because the amounts are so large and concentrated. At 1st Commercial Credit, we don't discriminate against government contractors. We know that you have no choice but to accept large contracts to stay in business. We also understand that it can cause a substantial cash flow problem.
Our factoring company offers government contractors immediate cash in exchange for selling us your outstanding invoices. We can forward you as much as several million dollars to cover your payroll and help you obtain new contracts while waiting for payment on your old ones. When dealing with the government, the process can be a bit more complex than other industries. However, we are in full compliance with the Assignment of Claims and the Federal Acquisition Regulation laws that dictate how we do business with government contractors.
Most companies that take on a government contract perform technical or computer services. We deal most frequently with the following types of government contractors:
This list is not intended to exclude other types of government contractors. If you have outstanding invoices with the government and need cash now, we can help.
Due to federal regulations, we must impose the following additional criteria on government contractors applying for funding from 1st Commercial Credit: