Fit Small Business: Get Your Business Into Shape! › Forums › Small Business Finance Forum › can AR be factored if the customer is a government? › Reply To: can AR be factored if the customer is a government?
Great question. The short answer is yes, you can factor your accounts receivable from the government. However, I believe that in this specific case, the subsidiary would have to be the one engaging a factoring company and enacting the factoring itself. Still, since the parent owns the subsidiary, the end result would be the same.
For more information, check out these specific articles on factoring government receivables: How To Factor Your Government Contract Receivables, government factoring.
We also have 3 detailed articles on invoice factoring in general, which you can find below:
Hope this helps!