The government is generally a very reliable customer with a good deal of money to spend. Because of this, it is fairly easy to get paid upfront for a government jobs by selling the contract invoice (receivables) to a Factor. Factors will purchase the contract invoices of companies who have customers with good credit. Most government agencies will qualify.
One problem with alternative sources of financing (those besides invoice factoring) is that it can take some time before a business is able to get money. For example, if a company wanted to apply for a loan, they would have to gather all of the necessary paper work, fill out the loan applications and then wait for the banks decision.
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Factoring Government Invoices and Getting Paid in Days Rather Than Months
