Factoring Government Accounts Receivable and get cash cash quick!

Factoring Government Accounts Receivable can be an ideal source of working capital for businesses with government customers.

If your customers are a federal, state or municipal government entity, there is a good chance your business is a fit for factoring government accounts receivable.

The specific product of service you sell is less important than your customer.

Common fits for factoring include a wide rate of manufacturer, distributors or service companies such as staffing or SaaS.

If your business needs more cash and you cannot obtain the financing you need from traditional source, consider factoring your accounts receivables which will quickly convert them to cash.

A common complaint of business owners with government customers is that they can pay slowing. With factoring , a slow paying customer will no longer impact your cash flow since you can get cash against your receivables often the same day you issue an invoice.

Whether your funding need is as little as $10k or as much as $10 Million, Blue Barn Funding can help.

To learn if your business is a factoring fit, please request a proposal:

To find government work available to bid, visit MyGovWatch

Selling to the government can be both advantageous and challenging for small businesses. Here are some pros and cons to consider:

Pros:

1. Steady and Reliable Revenue: Government contracts often provide a stable source of revenue for small businesses. Governments tend to have long-term contracts and predictable payment schedules, which can help small businesses maintain a steady cash flow.
2. Large Market: Government agencies at various levels (local, state, federal) have significant purchasing power and may require a wide range of goods and services. Selling to the government opens up access to a substantial market that can potentially lead to substantial growth opportunities.
3. Credibility and Prestige: Winning government contracts can enhance a small business’s reputation and credibility. Being associated with government agencies can help establish trust with other clients and stakeholders, potentially leading to additional business opportunities.
4. Competitive Advantage: Government contracts often involve a competitive bidding process, but some contracts are set aside specifically for small businesses. This set-aside provision allows small businesses to compete with their peers, rather than larger, more established companies, giving them a better chance of securing contracts.
5. Potential for Long-Term Relationships: Successful completion of government contracts can lead to repeat business and long-term relationships. Once you have established a track record of delivering quality goods or services, government agencies may be more inclined to continue working with your small business.

Cons:

1. Complex and Lengthy Procurement Process: Selling to the government involves navigating complex procurement processes, which can be time-consuming and bureaucratic.
2. Intense Competition: Government contracts often attract a significant number of competitors, including larger companies with more resources and experience.
3. Payment Delays: Although governments are typically reliable payers, payment delays can occur due to bureaucratic processes, budgetary constraints, or other factors. These delays can impact a small business’s cash flow and financial stability, requiring careful financial planning to mitigate potential risks.
4. Stringent Requirements: Government contracts often come with stringent requirements, potentially acting as a barrier to entry.
5. Limited Flexibility and Change: Government contracts often have strict terms and conditions, leaving little room for negotiation or flexibility. Small businesses may face challenges adapting to changes in project scope, schedule, or budget, potentially impacting profitability and overall success.

Overall, while selling to the government can provide significant opportunities for small businesses, it requires careful consideration of the pros and cons, as well as thorough preparation and strategic planning to navigate the complexities of the government contracting landscape.