At Commerce Commercial Credit, Inc., we understand providing a product or service to a government agency is not like any other business customer. 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. Our factoring services for government receivables and contracts will keep you in a strong position to take advantage of a good opportunity.
If you are like most companies that contract with the government, you might not have a lot of fixed assets that traditional lenders expect. They do not understand that the most valuable asset you could have is your accounts receivable that were sent to the government agency. These invoices represent real dollars for time worked and billed from services, or the products that your company supplies to the government.
Yes, winning contracts from a federal, state or local government entity is a tremendous opportunity to grow your company. A large amount of your operating capital is used to support a big government contract. However, issues come with this opportunity when payment for your product or service is delayed 90 days or later. Fixed overhead expenses languish because you have a cash flow shortage, which could cause you to decline new contract opportunities.
It does not have to be this way. Factoring government receivables and contracts through Commerce Commercial Credit can help your company say “yes” to every opportunity that comes along. 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.
As a business owner, you are fully aware of issues that may arise on a daily basis when dealing with private business clients and consumers. Supplying goods and services to government agencies could cause even more issues when you are without sufficient capital to progress. At any given moment, you may encounter:
You face the issues; Commerce Commercial Credit has the solution. We are an expert invoice factoring company when it comes to dealing with government contract work. Receivables funding for federal government contracts must follow Assignment of Claims Act guidelines that outline procedures for assigning financial rights. Processes set forth in the Federal Acquisition Regulations are also important to follow when resolving your cash flow issues.
The process of factoring government contract receivables involves selling invoices accepted by the government to a factoring company. This can be at a reduced price that is close to the full invoiced solar amount. An example of this is when a federal government agency owes $100,000 for a completed job. The company could sell that invoice for a percentage predetermined by the factor company and agreed upon between both parties. Instead of waiting several months, the company can receive payment for their work in a few short days.
After selling the invoice, most factor companies will collect the payment from the federal government agency. If the factoring agreement included terms for a reserve, the company could receive the difference after the factor company receives the payment. Typically, the reserve represents the difference between the amount the company received initially and the full invoiced amount. So, if the company received $90,000 upfront, they would receive the remaining balance minus any fees.
There are many factoring companies advertising their services to companies in need of immediate cash. Any government contractor that wants to factor their government receivables and contracts should partner with a factoring company that specializes the industry. This requires having both the financial resources and expertise to deal effectively with government entities at all levels.
Funding services from Commerce Commercial Credit, Inc. can enhance the financial capital of your company while payments are pending on invoices from government contracts. We offer a receivable financing solution that gives you immediate access to cash. There are no restrictions – use the funding for whatever you need. Whether it is to make payroll, hire more employees or buy materials needed to fulfill contract orders, we make sure you have the funds you need, when it is needed.
It only takes a few minutes to complete our easy two-page application. In most cases, we can fund your company within a few business days. Unlike other factoring companies, there is never a charge to complete our application. No charge to set up an account. No hidden fees. You are under no obligation after completing our secure online application.
Commerce Commercial Credit, Inc. does not require a long history of contracting with government entities. We are willing to help young enterprises new to the government arena and need cash today. Longevity is good, but often the greatest need for working capital comes during early stages of getting established as a mature business in government contracting services.
Guaranteed factoring benefits that our government contract clients receive include:
Achieving excellence is never accomplished by accident in any organization. Rather, excellence is achieved through vigorous insistence in delivering the highest standard of services to our clients. Important to our existence is their trust in our ability to show the utmost level of care and respect. Our focus is on serving you with the best accounts receivable services for your government contracts.
Use our government receivables and contracts factoring program as a financial tool to take your company to the next level. Having government entities as clients is desirable even though you may wait 60, 90 days or more to get paid. With Commerce Commercial Credit, Inc., you receive an easy, simple and fast process to getting paid much sooner. We have an extensive history of providing receivable financing to companies across the U.S. that do business with government entities at each level.
Our government contract clients provide the government with a variety of products and services. Examples include logistics, communication systems, programming support and military related products. While clients may vary, our services remain consistent when assisting clients with their working capital needs.
Some companies have a steady stream of work that comes directly from federal, state and local government agencies. Usually, these companies are competing against others to get lucrative and enviable jobs that equal steady work for the duration of a contract. Unfortunately, payment on invoices does not always match the volume of work these companies are expected to complete. With all of the great advantages to working for the government, there are drawbacks when money is lacking to meet operational costs. It literally takes money to make money and fulfill these contracts.
Because receiving payment could take 60 to 90 days after an invoice is sent to the government, companies have to go several months without income. Of course, there might be other projects, but those may be smaller than the government contract and not enough to pay daily expenses. Applying for a loan from a bank is one option; some may even try to set up a line of credit with a conventional financial institution.
A startup company or one with an average-to-poor credit rating is not appealing to banks. Waiting several weeks to find out if a loan or line of credit application is approved is less appealing to the company. Factoring government receivables and contracts can make the difference between no money and more than enough to continue operating as a successful business.
The advantages of relying on professional services from Commerce Commercial credit cannot be overstated. We are an experienced, knowledgeable and supportive team when it comes to serving our clients through government receivable funding. Our client list includes a variety of agencies from the federal government, and state and local governments in 48 states.
A partnership with us means that you are not paying to complete an application or to be approved for funds. There are no long-term contracts or invoice minimums. You are in control of the amount of money you receive with the freedom to choose which invoice is best to factor.
Companies that can benefit from our factoring receivables services have contracts with federal, state and/or county entities. Women-owned and minority businesses might also be eligible to benefit from this unique funding service.
With Commerce Commercial Credit, Inc., you will have peace of mind knowing that your financing comes directly from an experienced lender. You can feel comfortable in knowing that we have your best interests in mind when making our funding decisions. We know about the intricacies involved with government contracting that gives traditional lenders pause.
You will work directly with our team of decision-makers who are familiar with Assignment of Claims and Federal Acquisition Regulations guidelines. Both of these elements can cause much confusion and complication when you want to finance government contracts. As our funding partner, you never worry about the details – we do. Our goal is to make sure your company prospers and never suffers from such issues.
Our value of customer service is built on efficient and cost-effective measures. We leverage our strong knowledge of government contracts with our lending capacity to make sure your company has what it needs. Information you receive from Commerce Commercial is fair and fully disclosed.
A contract with the government represents a huge opportunity for growth and prosperity. Your chance of becoming more successful increases when you have an adequate amount of working capital to meet the demands of the contracts on time, every time. Commerce Commercial Credit, Inc. is here to make that happen. We offer competitive rates to give you the cash flow you need to handle a government contract. You never have to turn down a contracting opportunity due to a lack of funds to cover daily expenses or contract requirements.
We know how to work with government agencies while at the same time eliminating your need for a bank loan. Call our office today at 855-695-6700 and connect with one of our government receivables experts.