Contract Credit is an accounts receivable factoring company that specializes in financing government contractors.
Factoring is a financing option for businesses that don't get paid right after completing a job. In some industries, clients' invoices aren't due until a month or more after they receive their products or services. This delay in cash flow makes it difficult for businesses to accept new jobs because they may not have enough funds to pay employees or buy supplies. Small companies, startups, and seasonal businesses whose cash flow fluctuates throughout the year struggle the most with this issue.
Factoring is a lifeline for many businesses, and it can be especially valuable for federal contractors. When a contractor has to wait weeks or months for clients to pay, it's hard to know if they'll have access to enough capital to get their jobs done. Factoring your receivables with Contract Credit, Inc provides cash right away, so contractors can be more confident in their ability to financially handle their upcoming government jobs.
Contract Credit, Inc is also faster and easier than applying for a traditional bank loan. Because it isn't a debt that needs to be repaid, businesses are far more likely to be approved by a factoring company if they have bad credit or minimal credit history.
Although the federal government is notoriously slow with paying contractors, they're considered a low-risk client because they are highly likely to pay eventually. Factoring companies consider the trustworthiness of the clients when making an agreement, so federal contractors often get good deals with factoring.
Cash flow is the biggest problem that most small businesses and startups face, but factoring is a great way to help your business grow. When you don't have to wait months for your payments to come in, your business has more opportunities to invest in equipment, hire employees, and bid on new projects. If you're a government contractor, you should consider joining the thousands of business owners who use factoring to keep financial momentum.