Funding your Government Contract upfront—and anytime after

Government Contract financing is a form of financing used by government contractors to access working capital to fulfill their current contractual obligations. Winning a government contract means steady work and recurring revenue for small and medium-sized businesses- which is great, but comes with certain challenges as well. The primary complication can be access to working capital to pay for upfront costs such as staffing and vendors. This is where contract financing is a great option as it provides the access to working capital a government contractor needs to fulfill its contracts. Below are the three primary types of Government Contract options available to start-ups, and small and medium-sized businesses:

1. Government Contract Financing- Get the financing you need, even before starting the work.  LEONID is the only company in the market to offer this option.

2. Government Invoice Factoring– Also known as factoring government receivables, a government factoring company purchases your outstanding government invoices and advances you a portion of the invoice upfront.

3. Government Asset-Based Lending- Some lenders may offer a government contractor a Loan or line of credit that is backed by their company’s outstanding receivables from the Federal Government. 

Government Contract Financing provides consistent working capital for your business before you even start the work. Every Government Contractor is aware that they need working capital to cover regular expenses to complete a contract obligation, whether is a current project or plans for future work. The Federal Government always pays its obligations but the long wait for those payments makes it harder for a business to grow or bid on new contracts. Financing your government contract or unpaid invoice gives a business the working capital to manage payroll, pay overhead costs, pay vendors, and buy the materials they need to meet the current contractual obligations and take on new government contract opportunities. 

Government Contract Financing makes it easy for your business to overcome the challenges that come with fulfilling a government contract. Knowing you can secure financing before you even start the work or before your government invoice is paid will remove any doubts you might have in bidding on a new contract or how you’re going to keep your business running to fulfill your current contract.

LEONID’s flexible financial solutions have been crafted specifically to help government contractors fulfill their mission objectives. We believe working capital should not be the roadblock in preventing you from growing your business and helping our nation’s innovators accomplish their goals. Contact us today!