Government Accounts Receivables is an invoice paid by any government entity such as a state, city, country or federal invoice. Business owners can turn these invoices into immediate working capital with a matter of a week or two. All financing is based upon the "payers" credit, NOT the Business owner's. Therefore, government receivables are funded without delay and usually is only a matter of completing the paper work.
In 1986 Congress streamlined the paper work, when the Assignment of Claims Act (31 U.S.C.3727) was passed. This law states that government contractors or their assignees may assign their rights to receive payment due as a result of performance to a financing institution. (This is the assignment of invoices, know as factoring)
Accounts Receivable Financing allows companies to bid on government (and corporate) contracts without worrying about cash flow, working capital or payroll. Funding is flexible and adjustable and can accommodate IDIQs (indefinite deliver, indefinite quantity) contracts with almost any government agency.
Accounts Receivable Funding has been mostly used by European businesses. The first major factoring transaction in America was when the Pilgrim’s journeys to America were financed by advances from a Factor who provided the funds to pay for the journey. The Pilgrims repaid the money with earnings from America. As business has evolved, so has the Factoring Industry. The Industries largest asset is that monies can be wired into a business bank account within days.
For more detailed information on Accounts Receivable Funding, government or corporate invoices go to: http://www.taxeswilltravel.com/Cash%20Flow%20Loans.htm