A Virginia based Janitorial Services Company won a contract with the federal government to provide janitorial and cleaning services for some government facilities in the Washington, DC area. The terms of the contract dictated the company started with six buildings, and in the second phase would service an additional 6 buildings, after 3 months. In order to meet these terms, the company needed to add a significant number of new employees and equipment, before the second phase of the contract began. Because of the relative newness of the company, their Bank turned down their application for a line of credit. The company needed a reliable source of cash flow in order to meet the additional payroll, and purchase the necessary equipment and supplies for the work. The company leaders called TCI Business Capital to learn more about invoice factoring for government contractors.
TCI Business Capital has provided factoring for government contractors for many years. TCI was able to offer an invoice factoring line to the company. The invoice factoring line gave the company the cash they needed to add more staff and buy the supplies they used on the job. The invoice factoring line did not add any debt to the company. As the new work began, and additional cash was needed, the factoring line was easily increased. With the consistent cash flow from the factoring line, company leaders found it much easier to manage their cash flow and plan for the future.
Today, the janitorial company has fulfilled the initial contract and has bid on and won more jobs. The ability to add staff and maintain positive cash flow was crucial to the company’s success. The invoice factoring line from TCI Business Capital provided a steady source of cash as the company experienced growth. The leaders of the company are a believer in the benefits of factoring for government contractors.