You won the contract. Now fund the gap.
You pay your people every week. The government pays you in 30 to 60 days, longer when a shutdown hits. We arrange bank financing sized to your contracts so payroll never waits on a Treasury payment.
Winning bigger work makes the cash squeeze worse, not better.
Federal contracts are some of the best business there is. The catch is timing. Every new award adds weeks of payroll, materials and subcontractor costs before the first dollar arrives.
Day 1: work starts
Payroll, materials and subcontractors are paid from your account.
Day 30: invoice goes out
A full month of costs is already spent before the first bill is sent.
Day 60 to 90: payment arrives
Two to three months of costs are carried before the first payment.
Every month after
As the contract grows, so does the cash tied up in it.
A government shutdown or a rejected invoice stretches the gap further, right when you can least afford it.
How much cash is your contract tying up?
Four inputs, about two minutes. You get an estimate of the cash carried before payment and a rough sense of what your federal receivables could support.
Illustrative estimate only. Not an offer or commitment to lend. Actual availability depends on lender review of your contracts, receivables, financials and eligibility rules.
Bank credit that grows as you bill.
The most common structure is a revolving line of credit backed by your federal receivables. Lenders call it asset based lending. To you it means cash on the day you invoice instead of the day Treasury pays.
Review the contracts
Contract types, payment terms, prime or sub status, billing history and anything that could block a lender, like a tax lien or an open dispute.
Structure the line
Line size and eligibility terms that hold up in a shutdown, so your package is clean before a lender sees it.
File the assignment
The federal Assignment of Claims paperwork that lets a lender collect on government invoices, done correctly and once.
Place it with a bank
We take it to lenders that understand government pay cycles, negotiate terms and stay with you to closing.
The parts most banks get wrong.
Federal receivables are strong collateral. The setup is what trips up generalist lenders, and it is where deals stall.
Assignment of Claims
A lender can only collect on government invoices once the assignment is filed correctly with the contracting officer and the paying office. How the Assignment of Claims Act works.
Prime and sub receivables
Invoices to an agency and invoices to a prime contractor are underwritten differently. We sort them before the lender does.
Tax and setoff cleanup
The government can offset what it pays you against what you owe it. We find those issues early and fix them before they cause a decline.
Shutdown proofing
A shutdown ages your invoices just when you need cash most. We negotiate eligibility terms and line size with that risk in mind.
Built for owner run contractors with real billing history.
Strong candidates
- Prime contractors billing federal agencies directly
- Roughly $3M to $50M in annual revenue
- Six months or more of federal billing history
- Services, supply, manufacturing, transportation and logistics
- Growing faster than the current bank line
Usually a harder fit
- A brand new award with no invoices yet
- Subcontractors heavily concentrated with one prime
- Construction billing heavy with retainage and progress payments
- Unresolved federal tax liens or setoff claims
- Open disputes or cure notices on major contracts
What owners ask us first.
Do I need billing history before I can get a line?
For a receivables line, yes. Lenders advance against invoices, so a brand new award with no billings has nothing to lend against yet. We can plan the facility now so it is ready when your first invoices go out, and look at other options for the startup period.
What if I am a subcontractor?
Subcontract receivables can be financed too, but the lender looks at the prime contractor's credit instead of the government's. Terms depend on who the primes are and how concentrated you are with each one.
Will this affect my bonding?
It can if it is structured carelessly. On bonded work the surety has its own rights in the contract proceeds. We structure financing with your surety relationship in mind and bring the surety into the conversation early.
What happens to my line during a government shutdown?
Payments slow and invoices age, which can shrink what a lender will advance. We negotiate eligibility terms and size the line with that risk in mind, so a shutdown does not become a cash crisis.
What does it cost?
Pricing depends on the lender, the size of the line and your financial profile. Bank lines are typically far cheaper than short term advances or factoring. Our advice is free, we are compensated when financing closes, and we disclose how before you commit.
Are you affiliated with the government or the SBA?
No. Cobalt Commercial Credit is a private firm that arranges commercial financing with banks and other lenders. Lenders make all credit decisions.
Tell us about your contracts.
A Managing Partner reviews every inquiry, usually within one business day. No credit pull and no obligation to start the conversation.
- If there is a fit, we will ask for your contracts and a receivables aging report.
- Your cash gap estimate is included with your message.