TCI Business Capital is a leading government contract factoring company. Contractors working on government contracts often wait long periods of time for payment. Factoring is the solution for companies needing immediate cash.
Since 1994, TCI Business Capital has provided invoice factoring to companies in a variety of industries. Government contractors use the cash from factoring to pay bills, meet payroll, purchase equipment, and more. Contact us for a free, no-obligation quote and consultation on how factoring can be the source of cash for your business.
Government contractor jobs, like any type of work, have pros and cons. The U.S. Federal Government is the world’s largest enterprise and is the single largest purchaser of goods and services in the world, spending more than $400 billion per year. The Government of Canada also turns to suppliers for a wide variety of tenders. U.S states and local governments, as well as Canadian provinces and municipalities, all rely on government contractors to improve service delivery to their constituents. That’s the good news.
The bad news? Even with safeguards such as the Prompt Payment Act, government receivables can be some of the most difficult invoices to collect. That’s why accounts receivable financing makes sense. Accounts receivable financing, also known as accounts receivable factoring or invoice factoring, improves cash flow for all types of government contractors by providing immediate payment on government receivables. Rather than waiting 30 days or more for payment, invoice factoring of government invoices provides immediate cash.
Government contractor financing, also known as factoring, is a financing solution many government contractors use to bridge cash-flow gaps. TCI Business Capital purchases a client’s invoices to its customers, advancing up to 95 percent of the invoice amount. The cash is deposited directly into our client’s bank account within 24 hours. Once the invoice is paid by the customer, TCI Business Capital pays our client the remaining balance, minus a small fee.
Government contractors use invoice factoring as a financing solution because they need working capital for their businesses. Slow pay causes cash-flow stress. It’s challenging to wait 30 days or more for payment when bills such as payroll, insurance and daily operating costs are due. They rely on factoring to keep their businesses going and meet daily operational expenses.
Instead of obtaining a business loan or business line of credit, government contractors choose factoring for cash in 24 hours. With banks, it takes months to get financing. Factoring is a quick and excellent alternative to banks, and the amount of available capital grows as business grows.
There are many types of government contracts where accounts receivable financing improves cash flow, including:
Steady cash flow helps government vendors operate their business smoothly. At TCI Business Capital we know the need for cash is immediate. We’ve cut the red tape and streamlined the application process. If you’re a government vendor, chances are we’re already working with the government entity, which makes the process that much easier.
Step 1 – Get a Quote
Speak with a TCI Business Capital representative. We’ll discuss your cash-flow situation and needs, and we’ll offer a free, no-obligation quote and approval for our government contract funding solution in 30 minutes or less.
Step 2 – Submit Invoices and Related Documents
Once a factoring line is agreed upon, we’ll schedule your first funding. During the set-up process, we’ll walk you through the agreement and discuss your invoices and any related materials.
Step 3 – Get Cash for Your Invoices
When the set-up process is complete, we fund you via ACH direct deposit or a wire transfer directly into your bank account. From this point forward, each time we receive your invoices, we’ll process and fund you the same day the invoices are received.
Government contractors benefit directly with the cash flow from factoring. There are other value-added services that come from financing with TCI Business Capital. Benefits such as professional accounts receivable management, trusted treasury services and online reporting give clients the peace of mind to focus on the job at hand.
Why factoring makes sense for government contractors