Capital Business Finance has a team of dedicated sales and operations personnel that specialize in providing Government Contract Financing solutions to Prime and Sub-contractors for State, Federal and Municipal government projects. We custom tailor our solutions to provide our clients with the growth capital needed to fund task orders, as well as any other capital needs for contract completion.
Government Contract Financing Opportunity
The United States Federal Government is the largest Debtor in the country, but operates differently than your typical public or large private company. Rapid growth can occur once a contract is awarded or once task orders are issued causing excitement. This excitement is typically followed by a reality check and the question; How can I meet my payroll, vendor, and other obligations of my company while this project is being completed? The answer is Capital Business Finance Government Contract Funding Vehicle.
The Federal Assignment of Claims
The Federal Assignment of Claims outlines how a Government Contractor may assign monies that are due under a Federal Contract. Obtaining an approved Assignment of Claims is a detailed process that Capital Business Finance operations department has the qualification and experience to navigate through. In addition to an Assignment of Claims, a Contract Modification may need to be obtained as well. Once the above are in place the verification and funding process is quick, typically 24 hours. It is important to work with a financial institution that understands the intricacies of the Federal Assignment of Claims, Contract Modifications, and communicating with Contracting Officers.
Get the cash you need today.
Contract Vehicles and Small Business Programs
There are various Federal Contract Vehicles that Capital Business Finance clients have used to secure work with the Federal Government and Department of Defense to include: IDIQ’s, BOAs, Task Orders, GSA Schedule, ENCORE II, SeaPort-e and DHS Eagle, just to name a few. Capital Business Finance has experience with multiple contracts allowing us to quickly and efficiently structure our clients a financial solution.
There are a variety of programs and qualifications tailored to Small Business loans who wish to work with the Federal Government. The below qualifications receive special treatment on certain Federal Contracts:
- WSOB – Women Owned Small Business
- HUBZONE – Historically Underutilized Business Zone
- 8(a) Certified Small Disadvantage Business
- VOSB – Veteran Owned Small Business
- SD-VOSB – Service-Disabled Veteran Owned Small Business
Government Contract Financing by Capital Business Finance
Government Contract Financing is a specialized financial solution offered by Capital Business Finance, designed to assist businesses engaged in government contracts. This financing option provides the necessary capital for companies to fulfill contract obligations without facing cash flow issues.
Many businesses may encounter delays in payments from government agencies, making it challenging to manage operational costs and payroll. With Government Contract Financing, companies can bridge this gap effectively.
Capital Business Finance understands the unique challenges of government contracting and offers tailored financing solutions that cater specifically to this sector. Their flexible terms allow businesses to access funds quickly and efficiently, supporting various operational needs like equipment purchases, labor expenses, and other project-related costs.
Moreover, by leveraging this financing option, businesses can enhance their growth potential while maintaining compliance with contractual requirements. This service not only alleviates financial stress but also enables companies to focus on successfully delivering projects and achieving long-term success in the government contracting arena.
FAQs for Government Contract Financing
Government contract financing refers to funding options available to businesses that have secured contracts with government agencies, helping them manage cash flow and operational costs during the contract period.
Generally, any business that has been awarded a government contract and meets specific lender criteria can qualify for financing, provided they can demonstrate the ability to fulfill the contract.
Available types of financing include invoice factoring, lines of credit, loans specifically tailored for federal contracting, and programs like the Small Business Administration (SBA) 7(a) loan.
Invoice factoring involves selling your invoices at a discount to a third-party lender who provides immediate cash based on the value of your outstanding invoices from government contracts.
Yes, potential risks include higher interest rates compared to traditional loans, reliance on timely payments from the government agency, and possible impacts on your business’s credit rating if not managed well.
The time it takes to access funds varies by type of financing; however, options like invoice factoring can provide cash within a few days after submitting your invoices.
In many cases, lenders may require collateral which could include personal assets or business equipment; however, terms vary based on the lender and the specifics of your financial situation.
Yes! Many organizations offer assistance including consulting firms specializing in federal contracting finance and local Small Business Development Centers (SBDCs) that can guide you through the process.