Every year, the government awards billions of dollars worth of contracts to private companies throughout the United States. While that brings income-generating opportunities for a diverse range of companies, it can also present some financial challenges.
Some businesses can struggle to cover the costs associated with delivering the contract while still funding ongoing projects and operations. Others find the personnel required to complete the contract expensive, particularly when they have to wait up to 120 days for their invoices to be paid.
The result can be working capital problems that effectively paralyze the company and stall its growth. That’s where government contract factoring and solutions can help.
What is Government Contract Funding?
Government contract funding gives private companies, particularly small and medium-sized businesses, a way to access the money they need to sustain their operations while delivering government contracts. That helps to prevent a situation where you win a bid but are not able to fulfill it for financial reasons.
There are negative consequences associated with defaulting on a government contract. That’s why it’s so important that you explore your government con