Factoring Government Receivables

Government contracts can be lucrative for businesses working with local municipalities and state agencies.  Though working with the government may seem effortless at times, opportunities tend to be limited, which means your company must stay ahead of competitors vying for their business.  Ensure these profitable revenue streams remain constant by understanding the nuances of government contracts.

Cash Flow Obstacles Resulting From Government Contracts

Government contracts often have strict payment terms which can push your receivables periods out to levels that are unsustainable. Work has to continue on a scheduled pace in order to fulfill your end of the contractual obligations, but with payment coming up to a month after expenses are incurred, your business may find itself stuck in financial limbo. Paying late to your suppliers and contractors will heavily damage your credit and cause you to lose future business opportunities as well as credibility in an industry where reputation is pivotal. Bureaucratic inefficiencies that come with working with state and federal institutions can and will lead to headaches regarding paperwork specifications and phone calls that could potentially hold up your payment. The larger amount of work that would go into checking all paperwork and submitting it through the proper channels could cost you days of time and effort

Three Things You Need to Know About Government Contracts

Payment Plans

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Large government contracts often include a set payment plan which can take weeks or even months to cover your costs.


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Government work tends to be seasonal.  It’s vital to keep track of how different government agencies manage their contract and invoicing cycles.

Specific Paperwork

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Government contracts require strict adherence to paperwork specifications.

How Outsource Financial Can Help 

OFS can help improve cash flow by factoring government receivables.  Factoring is a solution for small companies in industries with extended payables periods and consistent cash flow.

OFS will ensure that all correspondence is delivered in a timely fashion and meets the requirements to continue receiving business opportunities from Government entities.

OFS will reduce the stresses of crunching numbers and waiting for a payment that isn’t coming for weeks by getting your project funded within 24 hours once setup is completed.

By working with OFS we can reduce the massive fluctuations that come with cyclical business and keep your company running strong year-round so that you don’t miss out on a single opportunity when it is presented.

OFS has years of experience in negotiating with suppliers to lower rates and increase your profit margins due to quick payment turnaround. By choosing to factor with OFS, you can ensure that your company has the cash flow and representation to continue bidding on promising opportunities.

For the last 10 years OFS has helped me grow from a one man operation an establishment of more than 40 employees. Outsource has exceptional customer service, timely, & convenient financial assistance, we have been very prosperous. Without a shadow of a doubt I recommend them to anyone that is looking for a loyal, personable, & trustworthy establishment for their financial needs.
Raymond Armani
Serurity of America