GOVERNMENT CONTRACT FUNDING

Once the job is compelte and the invoice or contract has been sent to the government, it may take 30-60 days for a company to be paid. If the companies credit score is good and they have the collatiral they could try to get a loan. So what's a business to do? Well, why not access Unlimited Capital Through the Creditworthiness of the U.S. Government Any government contractor, under the the "Assignment of Claims Act of 1986", may assign it's rights to be paid amounts due or to become due as a result of the performance of a contract to a bank, trust company or other financing institution. Larger vendors have been doing this for years. So what does this mean to you? Simply put, the U.S Government encourages their vendors to seek accounts receivable factoring of their invoices in order to help them grow, improve cashflow, increase performance, and level the playing field.

What Is Factoring?

In factoring , you sell your outstanding account receivables to a factor at a discounted rate. Why at a discount? Because of the Time Value Of Money your money has more buying power today than it will have in the future. Tomorrow's goods and services may cost you more later.

Factorying is designed for small, medium, and large businesses that need money immediately, and can't afford to wait 30, 60, or 90 days for a customer to pay. In most cases, either the business owner can't meet his cash demand (because, for example, his customers are slow to pay or income is low due to a seasonal slowdown), or his business is growing so rapidly that its cash flow can't keep up with its growth.

In factoring, you are given an advance of usually 70 -90% of the value of the invoice. This advance is dependent on the credit worthiness of your customers. The remainder is held as bad debt reserves. Once the account receivable is paid to the factor by your customer, the agreeded upon discount rate is removed and the remainder of the bad debt reserve is sent back to you, the business owner. You determine how the money will be spent.

See "How Factoring Works" below.

Factoring Is Not!

$ Factoring is not dependent on your credit worthiness but that of your clients.

$ Factoring creates no Debt

How Factoring Works!

NOTE: The Funding source is the only person that can determine the rates you will be charged. These numbers are for training purposes only!

You factor $100,000 of invoices

You are approved in 5 to 7 days for 70% advance = $70,000 sent to your bank account.

30% will be held as bad debt reserves = $30,000.

Your client pays their bill in 30 days.

Factor charges %2 for the 1st 30 days.

Bad debt reserve - Factors fee = 0.02 x $30,000 = $600

Is returnedis to your = $29,400 company.

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Advantages Of Factorying Your Government Invoices

$Factoring is not based on your credit worthiness but that of your customers. As part of our service, we do the research to assess your customer's creditworthiness for you.

$Your business qualifies if you already have existing credit lines, SBA loans or are a debtor in possession (Chapter 11). We work with your existing lenders to enable you to access additional funding.

$There is no long term contracts. Sell as many or as few invoices as you need to meet your businesses cash flow needs.

$As the business owner, you decide how to spend the money to increase the growth of your business and there is no debt to repay.

$You will have money to expand your business operations, put out more products, pay bills, receive discounts for early payment, etc.

$Once you are approved, you can get your money in 48 hours or less for each set of invoices you sell.

$ YOU fill in the rest!

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Do You Qualify For Government Factoring?

$ Yes, if your business sometimes suffer from a cash flow shortage and you've missed out on significant growth opportunities.

$ Yes, if your bank just rejected your loan application or requires you to pledge additional collateral that you do not have.

$ Yes, if you want to stop worrying about cash flow and start focusing on what really matters in a business- operating it.

$ Yes, if you need to improve or establish your credit rating.

$ Want to send the message to your custormers, that your business is solid, rapidly growing, and in high demand.

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How Do You Know This Is Legal

(a) The Contractor, under the Assignment of Claims Act, as amended, 31 U.S.C. 3727, 41 U.S.C. 15 (hereafter referred to as the "the Act"), may assign its rights to be paid amounts due or to become due as a result of the performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency. The assignee under such an assignment may thereafter further assign or reassign its right under the original assignment to any type of financing institution described in the preceding sentence. Unless otherwise stated in this contract, payments to an assignee of any amounts due or to become due under this contract shall not, to the extent specified in the Act, be subject to reduction or setoff.

(b) Any assignment or reassignment authorized under the Act and this clause shall cover all unpaid amounts payable under this contract, and shall not be made to more than one party, except that an assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in the financing of this contract.

(c) The Contractor shall not furnish or disclose to any assignee under this contract any classified document (including this contract) or information related to work under this contract until the Contracting Officer authorizes such action in writing.

http://cfr.vlex.com/vid/52-232-23-assignment-claims-19871267

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