Grow Your Trucking Business by Factoring Your Government Receivables
Landing a trucking government contract is a great opportunity for your businesses. With that said, government projects can quickly slow down your cash flow. Government agencies take anywhere from 30 to 60+ days to pay, making it difficult for you to take on new projects while you wait for payment. Invoice factoring for government contracts speeds up your working capital by allowing you to receive payment upfront to ensure you have the funds necessary to pick up your next load.
How Does Factoring for Government Agencies Work?
Factoring your transportation invoices is a quick and easy process that comes with many benefits. Once you submit your unpaid government trucking invoices to a factoring company, the factor will verify that the load has been delivered and advance you the cash within 24 hours. Advance rates can be as high as 97%. The remaining amount is held in a reserve account until the factoring company has received payment from the government agency for the full amount of the invoice. Once the invoice is paid, the factor releases the remaining amount back to you minus a small factoring fee.