Don’t Wait to Get Paid by the Government
Factoring Government Contracts is Fast and Easy
NPK Funding has been factoring government receivables for local, state or federal government contracts for years. Let us help your business get the cash it needs.
Finding the best factoring company to finance your government contracts if very important since these contracts are governed by the Federal Government Assignment of Claims Act, which differs for traditional commercial contracts. NPK Funding is familiar with these law and will work with the government contracting officers to make sure your business gets the best factoring rate. We will generally advance you up to 80% of your invoice value, so you can have access to the working capital your business needs immediately, instead of waiting for the government to pay.
NPK Funding provides lines of Credit from $20,000 to $10,000,000. Our customers contract with Federal, State, and local Government agencies and perform a wide variety of work, in almost every industry imaginable. With cash flow from NPK FUnding, you can grow your business without the delays associated with Government payment processes.
Apply now for government contractor factoring!
Why factor government contracts?
The government is notorious for paying slowly. This can cause problems for businesses that have limited operating capital. One way for a company to get the cash that they need is to sell their government contract invoices to a factoring company. By factoring government receivables, the business can get the cash it needs for payroll and other expenses. It also frees up capital for the business to go after new contracts and continue to grow.
How does government contract factoring work?
After a company has finished a government contract job, they will prepare and send an invoice. The government in many cases does not pay right away. In fact, sometimes it takes 90 days or more before they send payment. For many businesses, this could effectively shut down their operations, making it impossible to generate any other additional income. Government contract factoring gives them a way to get the money they need to sustain their business by advancing cash to the company based upon the face value of the completed contracts.
NPK Funding will usually advance the business 80% of the invoice amount (sometimes up to 95%, depending on the type of invoice). Once the government has paid the invoice, NPK Funding will advance the remaining amount to the company, minus the factoring fee.
