All sorts of contracting businesses including government contractors find invoice factoring has the greatest potential to control the ability to perform on big contracts. Because factoring is based on the invoices submitted to customers, like a government agency, there is no top end limit to how much they can fund. Having more invoices produced because the contract is growing in size does not matter.
It is vitally important to recognize that continued access to working capital is strategically important, especially when bidding on a contract. Accepting a loan that is essentially a term loan from cash advance finance company is no help at all months later when you are still trying to meet payroll.
With factoring, we can provide a letter verifying that you have financing in place to be included in the solicitation for contract. It is important to those people who award contracts to know your company will be able fulfill the obligations of the contract without fail. Knowing that you have invoice factoring in place for the contract will be another box checked off on the positive side of your ledger.
But the bottom line is – you need access to capital for a sustained period with the flexibility to grow without the limitations of credit line limit. Invoice factoring for contractors will allow this to happen making it easier to focus on your work rather than worrying about your future.