Factoring Government Receivable

Factoring government receivable invoices

Factoring government receivable invoices is a fairly common practice to avoid cash flow problems for small, growing businesses. One of the main reasons you should sell your invoices for immediate cash is to eliminate the strain of 30, 60, or 90-day pay delays. You need your money now.

10 simple reasons as to why you should factor government receivable invoices:

  • You obtain an immediate source of working capital
  • Your sales will increase
  • You can expand your business by filling more orders
  • It eliminates the risk of credit losses on your customers
  • You instantly have a professional credit checking and collection payment system
  • Have a flexible funding program that increases as you increase your sales (the goal of factoring)
  • Be able to pay your suppliers timely as well as take cash discounts that in turn will allow you to increase your credit limits with your suppliers
  • You will have funds available for your payroll and taxes
  • You will be able to extend a line of credit to your customers on large orders without having to ask them to pay COD terms
  • You will have the freedom to buy equipment or inventory on demand


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