government invoice factoring

When working under a government contract, having proper cash flow is extremely important.

Pay times are becoming slower and slower based on the sequester and other reasons. Financing for government contracts become an essential element of doing business. Government invoice factoring, receivable factoring, purchase order financing, letters of credit, and supplier guarantees can make or break your business.

According to, the Department of Defense (DoD) has slowed-down payments to prime contractors. The DoD was using the Quick Pay initiative to pay small businesses faster and more efficiently with a policy of 15 days. To assist subcontractors, the program was expanded to prime contractors in July 2012. “As of last year, we were doing OK on cash,” the official said. “We had wanted to aid small businesses, and so this policy worked fine.”

“With sequestration looming and cash problems occurring, we’re going to turn off Quick Pay in DoD for all but eligible small businesses,” the official said. Doing so should provide a one-time increase of several billion dollars for the DoD according to the Business of Federal Technology.

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