Government Contract Financing

Take on government contracts, successfully.

When you work with government entities there’s often a steep lag between providing goods or services and getting paid. Millennium Funding can help you fill that cash flow gap, which enables you to grow your business and bid competitively for contracts. We can help you fulfill federal, state, provincial or municipal government contracts with a full suite of funding solutions.

  • Accounts Receivable Funding – Fills the cash flow gap between sale of a product or service and government payment.
  • Purchase Order Funding – Incremental working capital for supplies when you have government orders in hand.
  • Inventory Purchasing Assistance (IPA) – immediate funding for the inventory and materials you need.

Many government suppliers use Millennium’s Accounts Receivable Funding, P.O. Funding or IPA solutions to:

  • Meet payroll and other expenses
  • Fund operations
  • Purchase inventory
  • Take on larger projects
  • Expand sourcing options

How it works

With several funding options, we can help you meet expenses while waiting for the government to pay.

 

How Accounts Receivable Funding Works:

How P.O. Funding Works:

How Inventory Purchasing Assistance (IPA) Works:

 


Advantages

  • Deep experience financing government receivables
  • Often same day funding once onboarded
  • 80-95% Cash advance on your invoices
  • Finance large orders that otherwise could not be filled
  • Simple process and easy setup
  • No liability on your balance sheet
  • Turn opportunity into profit

Accounts Receivable Funding FAQs

Q. What is Accounts Receivable Funding?

A. The discounted purchase of a business’s accounts receivable due from another business. It is not a loan. We purchase your accounts receivable for a discount, providing you a line of credit based on the money you are waiting for from your customers.

Q. How does it work?

A. Unlike banks, which rely on the financial strength of your company, factoring relies on the creditworthiness and financial strength of your debtors.

Q. Why do companies factor?

A. There are a wide variety of reasons, most of which are related to growth or survival. Some of the most common reasons to factor include:

  • Increase production

  • Create new markets

  • Hire new employees

  • Increase sales

  • Fill large orders

  • Cash and volume discounts

  • Unrestricted use of funds

  • Debt free financing

  • Need cash

  • Payroll

  • Payroll taxes

  • Expenses

  • Maintain credit rating

Q. What are some common obstacles to funding?

A. Common obstacles include:

  • Poor debtor credit
  • Liens on accounts receivable
  • Non-assignable invoice payments
  • Inability to verify invoices
  • Poor operator

Q. Will you fund start-ups?

A. In many situations, yes. Decisions are made on a case by case basis.

Q. What initial documents do you need?

A. A completed application, copy of your customer list, accounts receivable aging and a copy of your articles of Incorporation.

Q. What is the difference between Accounts Receivable Funding and P.O. Funding?

A. The easiest way to think about it is that Accounts Receivable Funding is used after goods and services have been delivered and when a company needs to accelerate access to the funds. P.O. Funding is used before goods or services are delivered to the buyer, to fund the production, acquisition and delivery of pre-sold goods.

 


Purchase Order Funding FAQs

Q. What is P.O. funding?

A. . It’s a short-term financing tool that helps you fill orders for pre-sold finished goods from creditworthy customers when you don’t have the working capital you need to purchase inventory. In addition, Letters of Credit or payment guarantees ensure payment to your company’s suppliers and enforce prompt delivery dates.

Q. How does it help?

A. It bridges the gap between making a sale and receiving payment, and assures your suppliers you can pay for the goods you order.

Q. Will you advance the funds to clients?

A. No, funds or payment assurance are issued directly to your supplier.

Q. Will you pay multiple suppliers?

A. Yes, within reason.

Q. Will you fund an entire project or only a portion?

A. In some cases, we will cover up to 100% of your supplier costs.

Q. Will you fund start-ups?

A. In many situations, yes. Decisions are made on a case by case basis.

Q. What initial documents do you need?

A. A completed application, copy of your Purchase Order, agreement between buyer and seller (where applicable), proforma invoice to buyer, supplier’s invoice to you, accounts receivable aging and accounts payable aging, and business financial statements.

Q. What is the difference between P.O. Funding and A/R Funding?

A. The easiest way to think about it is that Accounts Receivable Funding is used after goods and services have been delivered and when a company needs to accelerate access to the funds. P.O. Funding is used before goods or services are delivered to the buyer, to fund the production, acquisition and delivery of pre-sold goods.

 


Inventory Purchasing Assistance FAQs

Q. What is Inventory Purchasing Assistance (IPA)?

A. It’s a flexible funding solution that helps you optimize your cash flow and still be able to purchase the inventory you need. Essentially, you’re buying time to complete a product or service and receive payment from your customer.

Q. How long are your extended terms?

A. Negotiable, up to 90 days.

Q. What is the fee?

A. Fees are based on the length of time the invoice is outstanding.