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Government Factoring

J&D Financial has experience in factoring U.S. government receivables, based on U.S. government contracts. We know that these agencies have unique ways of handling your invoices, and as part of our U.S. government factoring services we will work with you and the various U.S. agencies to process your invoices in the fastest way possible.

Are you Eligible for Factoring?

Fill out the form to get a quick response!

In the commercial world (business-to-business rather than business-to-government) all states have adopted the Uniform Commercial Code or UCC, as it is commonly known. Very simply put, this allows a lender to collect payments on its borrower's behalf. As soon as the lender presents a business buyer of goods and services with a Notice of Sale and Assignment, regardless of any active participation on the buyer's end, the buyer will then be obligated to pay the lender instead of the contractor or supplier of goods.

When it comes to factoring government receivables, on the other hand, we understand that U.S. government contracts are governed by the Federal Government Assignment of Claims Act, also known as FACA. Although a lender must still file a properly completed UCC-1 financing statement in order to perfect its security interest in a government account receivable, FACA obligates the government to make contract payments directly to the lender. This provides the lender with the right to pursue collection of a government contract receivable against the applicable government agency, which could not otherwise be done.

Filing FACA assignments is notoriously tedious, requiring four originals of a multi-page assignment with notary and corporate seals. After receiving its copy, (unlike with UCC assignments) the government must then execute and return the Notice of Assignment form.

Why You Should Consider Government Factoring

Oftentimes, lenders cannot keep up with the pace of processing FACA assignments for every government contract awarded to their borrowers. As a result, processing and claims can be delayed, affecting not only current projects but the opportunity cost of being unable to commit to future projects.

J&D Financial is experienced in funding government receivables under the Federal Government Assignment of Claims Act.

With government invoice factoring, you won't have to worry about projects being delayed because of a cash shortage. We will give you an advance payment for the receivables from your government contracts to provide you with the funds you need for the smooth flow of operations.

J&D is familiar with the relevant laws. If you partner with us for government factoring, we will advance you up to 80% of your invoices once notice of assignment is accepted by the government agencies involved. (Want to know about Factoring Fees? Click here).

If you need more information regarding factoring, we encourage you to visit our FAQ page. If you have further questions regarding government invoice factoring, please give us a call at 1.305.893.0300.