Millennium Millionaire Mindset , 1900 Century Place Ste 240 , Atlanta GA 30345 , 687.718.5646 , firstname.lastname@example.org
UNDERSTANDING WHAT GOVERNMENT CONTRACT FINANCING IS
Government contract financing can be a very effective way for companies to fund the operational costs associated with doing business with the Federal government. Every year, the U.S. government awards billions of dollars of contracts to private businesses throughout the United States.
They are available for both small and large businesses.
While it can be a great feeling to be awarded a government contract, it can also be quite expensive to complete assigned jobs. Some companies will struggle to cover the operational costs of a particular project and still fund other projects and jobs.
Working capital problems can occur which can paralyze the company. There may not be enough to pay personnel and also cover expenses. One way for a company to get the cash that they need is to sell their government contract invoices to a factoring company.
After a company has finished a government contract job, they will prepare and send an invoice. The government may not pay right away. It could take 1-2 months before they send payment. In the meantime, the company will be out of the money that went towards operational expenses to complete the job. Without any income directly from this job, the company could be cash poor. For a large company with a good deal of income, this may be a bit inconvenient, but it won’t put their company at risk or cause them to be unable to fulfill other commitments or jobs.
However, for smaller businesses, having to wait 1-2 months to get paid for an expensive job, this could effectively shut down their operations, making it impossible to generate any other additional income. Government contract factoring gives them a way to get the money they need to sustain their business.
This type of factoring sells the invoice of completed government contract jobs. A company would be effectively selling incoming monies. The factor, or the company that buys the government contract invoice, will handle collecting the money. This might involve them sending the government written correspondence or calling them over the phone.
The invoice is sold at a discounted rate. For example, a seller may require that the factor funds them 90% of the amount billed on an invoice. Once the factor can collect all of the money, they will give the remaining, in this case, 10% back to the seller. However, the seller won’t see all of this because the factor typically charges a few points to cover their services.
A company that has won and completed a government contract may be willing to sell the invoice from the job to get the cash needed to continue fulfilling the contract. If a company needs money after a completed government contract and can’t wait 30-60 days to receive payment, they may be willing to sell the invoice to a factoring company to get money right away.
MILLENNIUM MILLIONAIRE MINDSET APPROACHES BUSINESS WITH A ” YES ” SOLUTION APPROACH, WITH PROGRAMS THAT HELP THE CUSTOMER GET TO THE FUNDING AS QUICKLY AS POSSIBLE.
MILLENNIUM MILLIONAIRE MINDSET PROGRAM FOR DISADVANTAGED, MINORITY & GOVERNMENT SUPPLIERS & CONTRACTORS…
Millennium Millionaire Mindset offers fast growing government contractors an alternative to bank financing . When banks either will not loan or offer too little funds, Millennium Millionaire Mindset promptly supplies a steady stream of cash flow by offering proof of Financial Capabilities, or invoice Factoring & PO Funding.
Get immediate financing for your government contract with Millennium Millionaire Mindset Company.
We have the experience in dealing with the government, we know exactly how to provide you with the cash you need
to keep running and growing your business.
Invoice Factoring, Vendor Guarantees, Credit Protection & Purchase Order Financing
Up to 90% Advance Rates with Online Invoice Submission, Reporting and D&B Reports
Our Famous “Non Hussle” with your Clients and Contracting Officer
Move Quickly on High Growth Client Approval versus slow Bank Underwriting
Startups, Turnarounds, Bank Exiting and Non or Under-Bankable Relationships
Personal Credit of Owner is not an issue. We look at\our Customer’s ability to pay
Fast Growing Client with sales of $25,000 – $10,000,000 per month
Government Contractors for All Industries
SME Disadvantaged & Minority Supplier Specialists
Follow us on these popular social networks
Fill in the form below to download the blog article as a PDFEnter your NameEnter your Email Address