Monday, August 6, 2012

Make the US Gov Your Client, Factor Your Invoices, Increase Working Capital

On any given day you can find anywhere from 28,000 to 35,000+ Government Opportunities at www.fbo.gov and from there you will understand that the US Government pays out millions and millions of dollars each work day to small, medium and big business.

They are RFP (Request for Proposals) for everything to buttons for US Army uniforms to feed for pigs, not to mention moving companies, truckers, cooks, administration, te100chnology, research, defense contracts and a vast host of other contracts and services.

If business is slow, you have the largest buyer in the world placing hundreds of thousands of contracts on a web site, waiting for you to bid and be awarded the contract.  Well it's not that simple, but it might as well be, because that is exactly what happens.

Lets say you are a small business who manufactures widgets.  The US Government wants to purchase your widget, lets say 100,000 a month.  Because you are a small company, you don't bid on the contract because you are short on working capital, especially for the delivery of the second 100,000 widgets.

The little know secret that many government contracts won't share with you is:  Congress voted in the Assignment of Claims Act in 1986.  What Law says is:  Government Contractors can factor their Accounts Receivables for immediate payment.

What?

Factoring is the act of turning your Invoices into working capital, immediately after you have sent the Invoice to your client.  And in this case, your client would be the US Gov.

So as a small manufacturer, you won't have to wait 30 days for payment, you can get paid after you have delivered the widgets to the US Gov.  (Note:  You will need to set up your Accounts Receivable Financing in ADVANCE, in order to be paid ASAP.)

Need business financing?  Visit: http://taxeswilltravel.com/Application.htm  Financials or Credit not an issue - no fee for placement. 

Need more clients? Defense Department, Veteran Affairs, Hud, Federal Reserve?  Visit: www.fbo.gov
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