Government Contract financing is a unique financing solution for those looking to leverage government contracts for additional working capital.
Government Contractors that win a government contract have obtained steady work and recurring revenue – excellent when you are a small- or medium size business. However, government contracts come with numerous challenges, notably with access to working capital, especially if you have multiple government contracts you need to execute on simultaneously.
This is where contract financing is a great option, as it can provide access to the working capital necessary to fulfill contractual obligations.
There are three primary types of Government Contract Financing options that LEONID offers to start-ups and small and medium-sized businesses:
1. Government Contract Term Loan– Get up to 50% of your current Government Contract upfront, market-leading rates, flexible payment schedules, and no personal guarantees.
2. Government Contract Revolving Lines of Credit– Expertly crafted to meet government contractors needing short-term or periodic capital. Get 50% contract LTV credit lines up to $500K; no minimums and no personal guarantees.
3. Government Invoice Financing– Also known as Government Invoice Factoring, LEONID will purchase your outstanding government invoices and advances you 90% of the invoice upfront. Unlike factoring, these are one-off transactions with one daily rate – no long-term commitments or long schedules of miscellaneous fees.