Company transitions from consulting to contracting with a $3M factoring line

AR Funding is proud to welcome this government contracting company as one of its newest clients.

AT A GLANCE

Industry: Government contracting
Location: VA
Company size: ~$1M annual revenue
Reason for applying: Pivot the business
Cash available through factoring: $3M

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PROBLEM: Slow payment jeopardizes the business

Founded in 2010, this business development consulting company helped businesses successfully bid on and find staffing for government contracts. The company had built up an excellent reputation within the industry, along with exposure to the government sectors that their clients contracted with. 

While the company’s services were in demand, it was a struggle to collect payment from its clients within 90 days. As a result, the company’s cash flow was poor and its profit margins were narrowing.

SOLUTION: $3 million factoring credit line

The company decided to use its expertise in government contracting to pivot into a more active role. The owner reached out to AR Funding in order to factor the outstanding invoices and free up the cash required to bid on and staff government contracts on his own. Using the letter of commitment that AR Funding provided, the owner is now able to provide assurance that it has the funding required to deliver on contracts. 

This happy client received financing with help from Mike Clark, Regional VP, Northeast Region. Find out how much cash your company can access through invoice factoring. Talk to us.