What is Factoring?

Factoring is the ability to borrow as much as 90% of the face value of your verified invoices.  This money is transferred directly into your account within 24 hours, so you are free to make your payroll, pay taxes and other operating expenses. Through a contract assignment, your invoice is paid directly to GCFS.  We pay back your borrowed amount, plus the factoring fee and return the rest to you.  Simple!

The Factoring Process

You complete services and send an invoice to the government.

A copy of the invoice is sent to GCFS.

The Invoice is verified.

GCFS advances you up to 90% of the invoice value within 24 hours.

The government pays the invoice to GCFS.

GCFS returns the remaining 10% minus the factoring fee to YOU!


Benefits of Factoring

Factoring is not a business loan, it is the sale of an asset; your receivables.  It does not create long-term debt on your balance sheet, and relies upon the credit worthiness of your customer (the US government), rather than your credit history.  This offers better opportunity for contractors to quality for much needed cash.  Other benefits include:

  • Immediate cash availability within 24 hours
  • No need to give up equity
  • Cash can be used for payroll, taxes and other operating needs
  • Flexibility to choose which invoices or customers to factor
  • Short application and approval process


P.O. Box 443, 112 W. Washington Street Middleburg, VA 20118