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Are you selling products or services to the federal government? Every year, city, county, state and the federal government acquire billions of dollars in goods and services from company of all varieties.

Even though undertaking business with the government is excellent and financially rewarding, it can also be tough on your money flow. Why? Government agencies take, on common, about 40 days to pay their invoices. In the meantime, you have to cover all your recurring expenditures such as payroll, rent and supplier payments.

This is not a problem if you have 60 days worth of operating capital in your bank account. But what if you do not? In that case, numerous company owners will attempt to get a company loan. Although that may possibly assist,enterprise loans are difficult to get and take a extended time to set up. Also, company loans have set limits.

What enterprise owners want, is a product that gives financing solely based on the business opportunity - on sales possibilities. This item exists and is called invoice factoring. There are several factoring businesses that specialize in factoring government contractors and vendors.

Factoring accelerates your government payments, and enables you to get paid in days rather than months. It really is a form of financing where the factoring company advances you funds against your government receivables. You get to use the funds quickly, while waiting to get paid. When the government pays, the transaction is settled.

If you are reselling products to the government, you must also think about purchase order financing. In this case, the factoring business provides you with financing to pay your suppliers, enabling you to make the sale. Obtain order financing performs nicely with invoice factoring and can also assist you develop your firm - exponentially.

So, if you own a organization that sells to the government, be confident to look into factoring and buy order financing.