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Financing for US Federal, Municipal and Foreign Government Programs

 
The thing about government work is that it isn’t half bad.
 
The other thing about government work is that it is.
 
With their specialized contracts and unique requirements federal, state and local governments can impose special burdens on their vendors and their vendors’ balance sheets. That’s the bad news. But the good news is governments generally are high-volume, loyal and repeat customers.  
 

Municipal Project Financing

And the even better news? Affiliated Financing helps companies do more profitable business with government institutions. Our project financing programs allow companies to bid more aggressively, confident in the knowledge they will be able to deliver on a government contract without sacrificing their own cash flow or bottom line.
 
  • Cash Flow payment, instead of progress-payments:  We can help by financing contracts in advance of receipts from the government. Our financing encourages multi-year contracts for large projects and facilitates the cash-flow timing of the draws. The draw timing is usually specified by the contractor and paid by the government after the bonded project is completed.
  • Bullet Payment structure option:  Since most businesses cannot easily operate under the financial pressures placed on their cash flow and balance sheets by government progress-payment inspection draws, our financing actually facilitates doing business with the federal government. One popular program we offer is single-payment “bullet” loans, permitting multi-year deferred payment until after the project is completed, simplifying tax-exempt bond issues.  The contractor is paid either up-front or as per schedules designed by the contractor, and the government entity can wait until the project is completed before issuing the tax-exempt bond.
Economic Development Sources wishing to help job-creating projects in their jurisdiction secure financing.  If there is a multiple of options sources available after the project is built, we can arrange 3-5 year bridge loans, as long as the local EDC irrevocably guarantees repayment will be delivered on the due date from whatever source the EDC chooses.  The EDC can place a blanket “all asset” liens or equipment and real estate mortgages to control the assets and make sure the loan is repaid. With three years of operations history, most projects should be “bankable”.

 

 

Financing for Federal Government Programs:

 

As the largest purchaser of goods and services in the world, the U.S. government frequently pays via “progress payments.” Made over time, progress payments allow the government to avoid large up-front costs for goods and services while imposing cash-flow burdens on its vendors.

 

 

 

At Affiliated Financing, we offer two strategies that eliminate that pressure.

 

  • Cash flow payment.
    Predictable and timely – payments are scheduled by the contractor, rather than at the mercy of an inspector.
    Lower costs than mezzanine funding.
    Facilitates multi-year contracts for large projects.
  • Bullet payment.
    Single-payment loan permitting multi-year deferred payment until project’s completion.
    Contractor paid up front or as per their schedule.
    Government issues tax-exempt bond at the project’s completion, simplifying related issues.

 

Financing for State & Local Programs:

 

Affiliated Financing can provide non-recourse project financing of a contract’s present value in advance of receipts from state or local governments that frequently pay only over time.

 

 

 

Financing for Foreign Government Programs:

 

Foreign governments often underwrite large infrastructure projects and manufacturing facilities to help expand native industries overseas. The challenge with these projects is they require significant capital at the outset but only provide benefits over time. Affiliated can provide the project financing that eases the resulting budgetary pressure and supports the project’s success.

 

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