It is very common for govie contractors of all sizes to work with a factoring company. It starts when a company has been trying for a few years to get their first contract award. The company has been bootstrapping for all this time trying to land an account. This means the financial condition of the company and its owners on paper doesn’t look very good.
By factoring the invoices generated by the work done on the contract, the company can grow exponentially, go after more and larger accounts all the while paying their payroll the bills AND without developing a long term debt on the balance sheet.
Because of the ebbs and flows of the economy and government spending, some well established contractor firms find themselves shut out from typical access to working capital. A downturn might have affected overall profitability, delinquent tax issues might have cropped up or a company might have been swallowed up in an acquisition which rendered the new entity a start up. All of these issues can be smartly addressed when working with us, factoring your invoices.
It’s time to gain regular access to working capital using your accounts to provide the basis in a totally flexible, easy to use cash flow solution.