Quick answer
Government Contractors companies typically wait 30–90 days from federal, state and local agencies. Government receivables financing advances against approved agency invoices, with Assignment of Claims support.
Key takeaways
- Agencies are reliable but slow payers, and new contract awards require immediate staffing and supplies.
- Common uses: contract mobilization, cleared-staff payroll, supplies & equipment, bidding new awards.
- Funding usually arrives within 24–48 hours after setup.
Why is cash flow so tight in government contractors?
Agencies are reliable but slow payers, and new contract awards require immediate staffing and supplies.
Payment terms of 30–90 days from federal, state and local agencies are the norm, which means profitable companies can still run out of cash while waiting.
The fix: finance your receivables
Government receivables financing advances against approved agency invoices, with Assignment of Claims support.
Because approval depends on your customers' credit, growing and younger gov contracting businesses can qualify.
What the funds are used for
Government Contractors clients most often use funding for contract mobilization, cleared-staff payroll, supplies & equipment, bidding new awards.
Practical cash-flow habits
Invoice the same day work is completed, confirm the customer's approval process upfront, track days-sales-outstanding weekly and keep documentation (POs, delivery proof, timesheets) attached to every invoice — funders pay faster when files are complete.
Get a funding quote in 24 hours
Talk to a National Invoice Factoring specialist at (929) 658-8087 or apply online — no obligation.
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Written and reviewed by the National Invoice Factoring funding team — specialists in receivables and trade finance since 2009.
