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Mon, October 13, 2008
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How To Finance Your Government Contracts
By: ArticleTrader
Are you selling products or services to the federal government? Every year, city,
county, state and the federal government buy billions of dollars in goods and services
from business of all types.
Although doing business with the government is great and financially rewarding, it can
also be hard on your cash flow. Why? Government agencies take, on average, about 40 days
to pay their invoices. In the meantime, you have to cover all your recurring expenses
such as payroll, rent and supplier payments.
This is not a problem if you have 60 days worth of operating capital in your bank
account. But what if you don’t? In that case, many business owners will try to get a
business loan. Although that may help,business loans are tough to get and take a long
time to set up. Also, business loans have set limits.
What business owners need, is a product that provides financing solely based on the
business opportunity - on sales possibilities. This product exists and is called invoice
factoring. There are many factoring companies that specialize in factoring government
contractors and vendors.
Factoring accelerates your government payments, and enables you to get paid in days
rather than months. It’s a form of financing where the factoring company advances you
money against your government receivables. You get to use the funds immediately, while
waiting to get paid. Once the government pays, the transaction is settled.
If you are reselling products to the government, you should also consider purchase order
financing. In this case, the factoring company provides you with financing to pay your
suppliers, enabling you to make the sale. Purchase order financing works well with
invoice factoring and can also help you grow your company - exponentially.
So, if you own a business that sells to the government, be sure to look into factoring
and purchase order financing.
About Commercial Capital LLC We are a factoring company that works with small and medium
sized businesses. For a free invoice factoring or receivables factoring
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