Free Government Grants

Apply for Free Government Grants. Never Repay!

Government Funding Queensland

Government Factoring & PO Funding

In America today it is very difficult to have topline growth. The economy is stagnant and this represents unprecedented challenges to business. There is one exception to this trend. What is the one organization that is buying goods and has small business programs to buy goods from them: The US Government.

In America today it is very difficult to have topline growth. The economy is stagnant and this represents unprecedented challenges to business. There is one exception to this trend. What is the one organization that is buying goods and has small business programs to buy goods from them: The US Government.

The problem here is it costs money to fulfill a government contract. The company that secures this business needs to put up the cash to complete the contract. They may have to hire labor, purchase materials and other costs associated with that particular job. The bigger it is, the more they have to pay out.

These big contracts can be financially draining in the short-term. Even impossible for the small business to take on in today's financing environment. Even if the business can pull together enough money to finance this job, they might not be able to take on any others. This means lost revenue and a squandered opportunity for growth. Even after they finish the job, their financial picture might not change for sometime because they will have to wait for the government to pay. This process could be anywhere between 30 and 90 days.

Factoring and PO funding can be the perfect solution to financially take on that important, large government contract. Factoring is the practice of advancing money against your companies receivables. It allows you to leverage your receivables to obtain financing and help with your cash flow. Factoring can assist businesses in getting the working capital they need in many situations but what happens if they don't have the cash to fulfill the order in the first place? This can be a very common issue when it comes to government contracts and small business.

If you are selling a hard good, the factor can help in the purchase of that good so you can fulfill the contract through PO funding. For example, you get a $400, 000 order from a government agency and you can get the goods for $300, 000. Using the factors credit, the factor will buy the goods and have the goods shipped to the agency. That agencywill pay the factor. The factor takes out their fees and you get the balance.

Another service a factoring company can provide is credit guarantees. Lets say you supply t-shirts, lawncare, guard service, building maintenance or temp staffing. You are trying to land a lucrative government contract. A factoring company can provide credit guarantees for soft goods so the business can win the contracts and then once you deliver the service they factor the account receivables.

Article Tags: Small Business, Government Contract

Source: Free Articles from ArticlesFactory.com

Next page: Government Money Quotes


Bookmark/Share This Page:

ADD TO DEL.ICIO.US ADD TO DIGG ADD TO FURL ADD TO NEWSVINE ADD TO NETSCAPE ADD TO REDDIT ADD TO STUMBLEUPON ADD TO TECHNORATI FAVORITES ADD TO SQUIDOO ADD TO WINDOWS LIVE ADD TO YAHOO MYWEB ADD TO ASK ADD TO GOOGLE ADD TO MAGNOLIA ADD TO NING ADD TO RAWSUGAR ADD TO SPURL ADD TO TAGTOOGA

  Bookmark and Share

Recommended Products

Get The Debt Help You Need