Government Contract Factoring.
Working capital solutions for federal, state, and municipal contractors and subcontractors fronting labor and materials against slow-paying government purchase orders.
Key Challenges
45–90 Day Government Payment Cycles
Federal and state agencies routinely pay on net-45 to net-90 terms. Contractors must front labor, materials, and overhead for months before a dollar comes back.
Limited Traditional Financing Options
Banks often won't lend against government receivables. Without a hard asset base, growing contractors are forced to self-fund from existing cash — or turn down contracts.
Task Order and Contract Ramp-Up Costs
New task orders require immediate mobilization — hiring, equipment, and supplies — all before the first invoice is submitted, let alone collected.
Subcontractor Cash Flow Gaps
Government prime contractors pass through slow payment terms to subs, creating a layered cash flow problem that compounds with every tier of the contract.
Heritage Factoring Solutions
Advance against federal, state, and municipal invoices within 24–48 hours — government is among the safest payor classes available.
Access working capital at task order award to cover immediate ramp-up costs before first billing.
We work with primes and subs alike, structuring facilities around the full contract value and payment waterfall.
Your line grows with your contract backlog — no need to re-underwrite every new award.
Industry-specific rates based on customer creditworthiness and invoice volume.
Ready to Strengthen Your Cash Flow?
Our free Capital Architecture Assessment analyzes your current position and tells you exactly how factoring can support your government contracting business.