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Accounts Receivable (A/R) Financing

Accounts Receivable Financing

Do you currently have a Government Contract and need Capital?

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Capital doesn’t always move the way it should, as any business owner knows all too well. You still have to pay your vendors and employees while waiting for your government invoice to be paid. This week’s payroll isn’t going to be covered by goodwill. You can use your unpaid bills as collateral for working capital by our government accounts receivable financing, also known as government receivables financing. LEONID Finance can provide you with up to 90% of your outstanding government invoice directly to your company’s bank account to be used for operating expenses.

1 time transaction

Advanced value at

90%

Advance as fast as

Within hours

Through LEONID Finance’s unique Balance Sheet as a Service (BSaaS) approach, we are becoming the go-to financial services provider for a currently under-banked ecosystem. Contact us today to discover the best option for your business. To learn more about your Government Contract Funding Options visit Our Services page or contact us today!

How it works

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A/R Financing is the most popular BSaaS service offering among our clients, with good reason. It’s a straightforward way to fulfill your Federal or State Government contract while you’re waiting for your invoice to be paid.

When you sell us your government invoice, it simply means you’re taking something off of your balance sheet and putting it on ours.

LEONID’S Government Contract Financing, Accounts Receivable Financing, and Invoice Factoring for financing government contracts are completely transparent and give our clients peace of mind. We know how crucial it is to push your work forward to meet your deadlines for your projects and our BSaaS Service is built to fuel your goals.

Contact us today to learn more about our Government AR Financing for your federal, state, or local government contracts.

You’re working hard to move the needle in the right direction, and so are we. Our straightforward A/R Financing gives you everything you need and only when you need it:

Get up to 90% of the invoice value

Get the remaining net balance, which includes our discount, is delivered to you after the invoice is paid. Our clients average an 97 cents on the dollar compared to our competition that average between 50-80% total of invoice value.

No personal guarantees needed

We doesn’t require a personal guarantee for clients using our Accounts Receivable Financing service.

One-time transaction, no long term contracts

No long term contracts, use our A/R Financing service when you need it. All of our Balance Sheet as a Service (BSaaS) service offerings (A/R Financing, Invoice Financing, etc..) are one-time transaction.

DoD Trusted Provider

We work with every sector in the government. We are a DoD has Trusted Capital Provider and have experience transacting on classified projects.

BSaaS is there whenever you need it

Our BSaaS is available to you when you need it—whether that’s tomorrow, 3 months from now or 18 months down the road.

Non-dilutive funding

You maintain full control over, and equity in, your company.

Why Government A/R Financing?

There are few assets more liquid than accounts receivable. As a result, they’re an excellent option for working capital to cover expenses like payroll, raw materials, production costs, and even growth.

Government receivable (A/R) based financing is secured by the borrower’s credit sales. Instead of using inventory, equipment, and other assets as collateral, the company pledges only its accounts receivable to secure working capital. Banks and private equity firms specializing in receivables-based lending offer this type of financing.

Accounts Receivable

Accounts receivable financing are funds sources where borrowers use their receivables as collateral to borrow from banks. The bank typically lends a percentage of the current prices of the receivables (e.g., 80%). The fraction differs depending on the quality of receivables.

Invoice Factoring

Small businesses most commonly use factoring to finance their accounts receivable. An institution that specializes in factoring purchases the borrower’s accounts receivable. The quality of the receivables measures the discount on the receivables.

Because the government factoring company buys the receivables outright, the borrower no longer has to worry about collecting the money owed to them. There are some fees and interest costs associated with factoring. Government Invoice Factoring should be used sparingly if a company tries to ensure good relations with its debtors.

Who Qualifies for AR Financing?

Government contract holders

With a government contract, there is one major challenge that can arise. If you’ve ever worked on a government contract, you’ve likely encountered the problem of cash. With the help of government invoice factoring, businesses can overcome cash flow difficulties. Several factors can help a business get the money it needs for an unpaid invoice.

Startups- and small businesses

AR financing is a fast-track commercial finance option for business owners who need capital. It uses a company’s accounts receivable to fund it, giving users quick and consistent cash flow. This type of factoring allows business owners to grow and prosper without being burdened by constant short-term funding constraints.

Female and minority-owned businesses

Around half of women-owned businesses are minority-owned. So race and ethnicity are essential factors in discussing business financing disparities.

Financing government receivables is quick and easy. Longevity in business or a high credit score is not a requirement. That means entrepreneurs can use government factoring company services even if they can’t get a bank loan. LEONID Finance eligibility criteria differ from traditional lenders. This is a great benefit for women- and minority-owned businesses who are considering Government Contract Financing for Federal Contracts or State Contracts. Visit our blog to learn how to finance your government contract.

Difference between Government AR Financing and Invoice Factoring

A lot of people confuse Receivables-Based Financing and Factoring. They are not the same, so this is a disappointment. Receivables can be used in either of these ways to generate immediate cash flow. Furthermore, both can be viewed as temporary means of financing. On the other hand, factoring is selling a company’s receivables to a third party.

There are many similarities between invoice factoring and accounts receivable financing. On the other hand, your unpaid invoices serve as collateral for this type of loan. Depending on how much you owe, you can get a line of credit from your bank.

Invoice factoring allows you to receive a one-time payment based on the invoice’s value. Put another way, and the factor is the party who pays for your invoices. Customers’ payments are collected by a factoring company. Invoice financing allows you to use your invoices as collateral, but they still belong to you. In other words, you’re in charge of obtaining customer payments.

 

Benefits of Government AR Financing?

  • A receivables-based loan is typically a long-term financing arrangement. New receivables that meet the lender’s requirements are pledged as collateral and increase the firm’s borrowing capacity. The amount of the loan changes as old receivables is replaced with new ones. More sales mean more money (cash flow) is available for the short-term financing needs of the company.
  • They do not require a monthly principal payment.
  • Government Accounts Receivable Financing is a quick way to get money if you need it right away. In many cases, this can be useful, such as when you need to repair or renovate, pay a large tax bill, or keep your cash flow in check when your customers are late paying. In most cases, funds are available within five to ten days.
  • With their help, the government contractor can expand at an almost infinite rate. To increase your advance, increase your sales of credit cards and other revolving credit products.
  • To make money, you sometimes have to spend money. However, the problem arises when your capital is locked up in stock or equipment. To boost sales, you may be able to use AR financing to fund strategic investments in your company. A lack of cash can’t stand in the way of expanding your business, thanks to Government AR Financing.

We believe our relationship with LEONID Finance will help us to expand our operations and move quickly within a dynamic supply chain environment. This agreement will ultimately help us bring a life-saving product to market more quickly, making our customers’ operations safer.

Caleb Carr
President and CEO, Vita