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Government contract financing often becomes a concern for small and mid-sized businesses after winning a contract. These businesses may wonder how to fund the necessary supplies, equipment, or workforce. Banks are willing to finance contractors with strong credit histories and collateral, but smaller businesses may not receive favorable terms, especially if they lack a robust track record. Furthermore, banks may not be able to provide quick financing. Beyond traditional bank loans or lines of credit, options such as factoring exist. Factoring involves a company, known as a factor, taking possession of an asset instead of accepting it as collateral, including invoice factoring and non-notification factoring.
