11. April 2012 05:53
As a government contractor, you face a totally different set of restrictions and regulations from your private sector counterparts. If this is your first foray into the field of government contracting, you'll need to take time and understand the basics of what to expect. One of the most important things to understand is that finding a lender who understands the intricacies and complexities of the government and can effectively work within them can be difficult. Be sure that your lender has a solid understanding of the differences that exist between financing a government contractor and financing in the private sector.
Assignment Of Claims Act
When a government contractor is financed, the government itself must be sent a notice of assignment. This provision was created by the Assignment of Claims Act, designed to protect the government's interest and always ensure clarity about who is receiving payment. The government notice of assignment is a mandatory and common step in government contractor financing.
Federal Acquisition Regulation
This is the comprehensive document specifying exactly how the government gets virtually everything it buys. Ensuring that you adhere to the requirements of this document will help your transaction proceed as smoothly as possible, especially if you plan to obtain some kind of financing.
Big Contracts Need Big Financing
Supplying the Federal government is noble and potentially a major boon to your business, but it can also mean a lot of strain on your cash flow. Government contract financing can help. It is possible to leverage a number of different financing opportunities; just work with a lender that has sufficient experience navigating the complexities of government financing and you're in a good position to succeed.
If you have questions about government contractor financing or would like to learn more about the options available, contact one of Crestmark's government specialists.