Government Contracts Financing
- Bridge Your Cash Flow Gaps

You Can Leverage Your Government Contracts' AR Turning It Into Working Capital

When contractors and subcontractors work with government agencies, whether it’s local, state, or federal, there are often long gaps between completing projects and receipt of payments. When you partner with a factoring company with extensive experience funding government contracts like CapitalPlus, your outstanding invoices can be turned into cash flow-helping funds. This will help you to meet your upcoming payroll, purchase materials, and not worry about other unforeseen expenses. It’s a funding solution that provides options, allowing you to focus on your day-to-day operations.

How Government Contact Financing Works:

The process of government contract financing using factoring

The financing of your Government contracts, a specialized form of Accounts Receivable factoring, is a financial option where you sell your unpaid invoices to receive payment months earlier than waiting for your government invoice payments to arrive. We do the waiting, not you. When choosing to factor your government contracts, CapitalPlus will purchase your invoices, pay off your subcontractors and suppliers related to that invoice, and advance you an agreed-upon percentage of the face value of your invoice (usually 80%). After receiving the payment, CapitalPlus will send you the remaining balance, less fees. In the meantime, you have benefited from the initial advance and used it as you see fit.

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Let's talk...

Talk with a member of our team and learn how quickly you can help you bridge your cash flow gaps with federal contracts factoring.

Give us a call at 865-670-2345 or schedule a meeting:

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How can CapitalPlus help you?

*Your privacy is our highest priority. Any information you share will be kept confidential. No personal or business information will be shared with a third party without your express consent.

We are only able to fund construction companies located in the United States.

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Factoring Compared to Other Financing Options

Government contracts financing stands out from other financing options like bank loans and merchant cash advances (MCAs). Bank loans often require substantial collateral, lengthy application processes, and strict credit requirements. MCAs, while faster, come with higher costs and can strain cash flow due to daily or weekly repayments. In contrast, government contract financing offers a balanced solution with quick access to funds, lower costs, and repayment aligned with government invoice payments.

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25+ Years of Federal Contract Financing Experience

We know working with the government isn’t always easy. The CapitalPlus team is registered and active with the U.S. Federal Government Systems Award Management (SAM), and has the expertise to negotiate the Assignment of Claims Act. This federal law specifies the procedures for assigning financial rights to invoices of government contractors. Our experienced team of specialists understands government contracts, the unique cash flow problems of construction companies, and can support you allowing you to complete your job without worrying about payroll or other accounts payable.

Since 1998, we have been empowering both government and non-government contractors with contract financing and raw materials pre-purchasing, and we might be able to help you too. Give us a call at 865-670-2345 or schedule some time to see if we are a fit.

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A Few CapitalPlus Success Stories

Over the past 25+ years, we have helped thousands of construction businesses factor their government contracts and free up their daily cash flow. Here are a few of our many success stories.

Client: A FEMA contractor from Texas

Situation: This contractor is assisting with rebuilding homes that were damaged by Hurricane Harvey. The FEMA contract gave them the opportunity to double their workload. But before committing, they wanted to make sure the had additional financing in place.

Solution: With CapitalPlus’ assistance, they received $250,000 factoring line funding the first round of invoices. This allowed them to purchase needed materials and hire additional workforce. The funding seeded not only the completion of this project but allowed them to have a financial foundation for future projects.

Client: A Guardrail Repair and Maintenance contractor in Georgia

Situation: This contractor was ecstatic landing the contract to do roadside repairs for the Georgia Department of Transportation. But because this project was much larger than past projects, ramping up financially was not something they could do without help.

Solution: CapitalPlus was able fund their first three invoices, $100,000 in total, guaranteeing that they could purchase additional tools and be able to make payroll during the ramp up. Beyond that, the remaining funds gave the contractor the cash flow to start the second phase of the project meeting their payroll needs.

Client: A Interior and Roofing contractor in North Carolina

Situation: Being awarded a large contract to restoring existing roof structures at Fort Liberty, this interior and roofing contractor knew this project was game changer for the company. However, due to the size of the project, they would to increase their labor force.

Solution: Because their current cash flow was not able to supply the new payroll, they turned to CapitalPlus’ government contact factoring. With a $2,400,000 factoring facility, the contractor was able to hire the workforce needed, make timely vendor payments, and use the extra working capital to start another project.

Client: Underground Utility contractor in New York

Situation: As with so many companies, being awarded a New York City government contract can be a major win for kickstarting their growth. However, for this underground piping contractor, waiting on payment was really hurting their ability to take care of other projects already in their pipeline.

Solution: Because they were under such a tight schedule, the contractor turned to CapitalPlus. They were able factor a $150,000 invoice allowing them to purchase required materials and meet their payroll. They were even able to mobilize and complete shop drawings for a future project.

Will you be the next success story at CapitalPlus? Find out with a quick phone call.

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Construction Projects That Can Benefit from Government Contracts Financing

These government contracts often involve significant capital outlays and extended payment terms, making them suitable candidates for financing solutions like factoring. Financing these projects helps ensure that construction firms have the necessary cash flow to manage payroll, purchase materials, and cover other operational costs while waiting for government payments.

  • Infrastructure Projects: Contracts for the construction or major overhaul of infrastructure, including highways, bridges, tunnels, water treatment facilities, and dams.
  • Public Building Construction: Projects involving the construction of government buildings such as schools, hospitals, courthouses, and administrative offices.
  • Military and Defense Infrastructure: Contracts for building or upgrading military bases, barracks, defense installations, and secure facilities requiring specialized security measures.
  • Environmental Remediation: Projects focused on cleaning up environmental hazards, such as contaminated soil or water, and restoring areas to safe conditions.
  • Energy Projects: Construction of renewable energy installations like solar farms, wind turbines, and hydroelectric power plants, or traditional energy infrastructure such as power stations and transmission lines.
  • Public Transportation Systems: Contracts for the construction or expansion of public transportation infrastructure, including subways, light rail systems, bus terminals, and airports.
  • Water and Sewer Systems: Projects to construct, expand, or rehabilitate public water supply and wastewater treatment systems, including pipelines, reservoirs, and sewage treatment plants.
  • Public Housing: Construction of affordable housing projects funded by government initiatives for low-income families.
  • Disaster Recovery and Mitigation: Contracts for rebuilding infrastructure and homes after natural disasters, such as hurricanes, floods, and earthquakes, or projects designed to mitigate future disaster risks.
  • Historical Preservation and Restoration: Projects aimed at preserving and restoring historic sites, buildings, and monuments of national or local significance, ensuring they adhere to specific preservation standards.
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Benefits of Government Contracts Financing
with CapitalPlus

We have expertise working with certified WBE (Women's Business Enterprise), MBE (Minority-owned Business Enterprise), and DBE (Disadvantaged Business Enterprise) companies providing cash flow support on Government contracts.

We provide you with government contract financing when others won't. We fund bonded projects, pay-when-paid contracts, progress billing, and distressed credit situations.

Solutions for commercial construction companies - from startups with limited or no credit history to large, established companies.

You will receive financing as soon as 48 hours after becoming a client.

Long-term contracts are not required.

We fund invoices from $50,000 to $10 million.

In-house underwriting makes for super quick decision-making.

We are a direct funding source with decision-makers on-site.

There are no monthly minimums and no penalties.

We work with other lenders (e.g., banks, PO, and ABL lenders) for refinancing and restructuring of facilities.

Supporting thousands of construction businesses since 1998.


Our experienced financial and construction industry experts are happy to answer all your questions about your financial options – contact us today at 865-670-2345 or schedule a call.

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Asked Questions

If you are new to CapitalPlus Financial Services or factoring in general, we hope that we can give you the information you need to make the best decision for your company’s working capital needs.

Factoring is financial option that involves selling of your receivables or outstanding invoices to a third party company for at a discounted rate. This allows you to not have to wait the normal 30-90 days for payment. Factoring provides billions of dollars to a wide range of companies - from multi-million-dollar corporations to small privately held construction companies each year.

Factoring provides an immediate source of cash flow for your company. Because you are able to choose where the money is needed most, it can be used to take on more or larger projects, to meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and so much more.

When we purchase an invoice, we advance you a percentage of the face value. This advance rate amount varies based on the situation, your needs, and an overall risk assessment of your client. Generally you will receive up to 80% right away, then receive the remaining reserve (less fee) after we receive your client's payment. We are 100% transparent about our fees so there are never any surprises.

When we purchase your invoice, we will advance a portion of the invoice, usually 70-80%, and hold the remaining in reserve. After we receive payment from your customer, the reserve is wired back to you, less our fee.

The established factoring fee is a percentage of the purchase amount and the length of time it takes to collect. The amount is determined by the risk of each invoice purchased, the pay term, and the number of invoices being factored. Because of this, any fees will be laid out during your introduction call.

It is your choice how frequently you provide invoices for purchase. Just like buying in bulk at your favorite grocery store, you can receive a discount for committing to a higher volume of invoices. When you reach out for the first time, you will be assigned an Executive Account Representative. Tell your representative your needs and they will help you understand how you get the most out of factoring for the best price.

No. Most contracts specifically define how your invoices should be prepared and when they should be submitted. We have contract experts on staff who can help you understand the requirements and help you comply with invoice formats and other needs.

No. The name on the check remains yours. You will however, be required to change the remittance address of that check to our lock box.

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