Supplying goods and services to government agencies could cause even more issues when you are without sufficient capital to progress. Common Issues Related to Operating Capital NeedsĪs a business owner, you are fully aware of issues that may arise on a daily basis when dealing with private business clients and consumers. Our experience in the factoring industry enables us to do what most traditional lenders would not consider: using your government receivables and contracts as collateral for the working capital that you need. Factoring government receivables and contracts through Commerce Commercial Credit can help your company say “yes” to every opportunity that comes along. Fixed overhead expenses languish because you have a cash flow shortage, which could cause you to decline new contract opportunities. However, issues come with this opportunity when payment for your product or service is delayed 90 days or later. A large amount of your operating capital is used to support a big government contract. Yes, winning contracts from a federal, state or local government entity is a tremendous opportunity to grow your company. These invoices represent real dollars for time worked and billed from services, or the products that your company supplies to the government. They do not understand that the most valuable asset you could have is your accounts receivable that were sent to the government agency. If you are like most companies that contract with the government, you might not have a lot of fixed assets that traditional lenders expect. Our factoring services for government receivables and contracts will keep you in a strong position to take advantage of a good opportunity. How do we know this? Because we have provided funding to companies like yours across the United States for many years to help them grow, make payroll and purchase needed supplies. Receivable financing is a great solution to solve cash flow issues resulting from invoices paid later.Īt Commerce Commercial Credit, Inc., we understand providing a product or service to a government agency is not like any other business customer. When working with government contracts, invoices are normally paid weeks or months after the services are provided.
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