the Federal Assignment of Claims Act Means to Government Contractors //
Federal Assignment of Claims Act outlines how factoring companies and lenders can arrange payments for federal contracts that are part of an accounts receivable. The Federal Assignment of Claims Act outlines how the lender can control collateral if the contractor or borrower uses the business’s receivables as collateral.
Since the 1930s, the Federal Assignment of Claims Act is a law. It was created to help contractors who work with the government finance their projects in the context of federal and government contracts. The Uniform Commercial Code (UCC) is another guide for assignment. It is a set standard adopted by most countries in the United States.
If a factoring firm sends notices that accounts of a business have been sold, it may require that they send payments to that company. A Notice of Assignment may be sent to a invoice factoring agency by a business that has not had any financial relationships in the past.
Factoring helps contractors bid on government contracts
The government contract market is competitive. A good bid can make a difference in winning a contract, or losing it to another company. Contractors must do their research on the project costs and make sure that they can afford to complete it with the money available.
Any government contracting company can bid on any project with confidence thanks to a government contract receivables finance company. As well as those who provide goods and services for fleet vehicles, disposable goods and legal assistance, contractors may also benefit from companies that provide technical support or are involved in the transportation of goods.
Federal regulations and the Federal Assignment of Claims Act are required for a business to operate. Government contract receivable financing offers a number of benefits. These include: AR financing, spot financing and bridge financing. Contractors may also be eligible for PO financing and same-day funding. They can enjoy low rates and an easy process to get invoices.
Obtaining a Lucrative Contract HTML3_ HTML4_ HTML5_ HTML5_ HTML5_
Contractors may choose to work for the government because of the high pay and stable working relationships. The United States’ largest employer is the federal government, along with local governments. Companies that are able to secure multiple government contracts could enjoy lucrative income from the federal government.
The cash from government contract receivables financing can be used to provide funds for companies to start work on government contracts. It may also allow them to hire additional staff, expand their business, or take on more contracts. A contractor can also purchase additional equipment and make sure that all invoices are paid on-time.
Government Contractor Financing Solutions
Being a contractor for the government can mean that payments may not always be in your immediate future. The government may offer long payment terms. Contractors may not be able to bid for the project if they have to wait long before payment. You can avoid this problem by using government contract receivables.
Security Business Capital can assist you with all your financing requirements for government contracts. Contact us today for a quote!
The post What does the Federal Assignment of Claims Act mean for government contractors was first published on Security Business Capital.
Author: Justin Young
Justin Young HoneyHat™
